Explain the use and functions of drug distribution channels

Ensures adequate availability and visibility of the right products, right target
markets, right quantity, right cost, right condition, right time, anytime and all the
time
Traditional marketsdrugs stores, hospital pharmacies, industrial clinics,
dispensing physicians clinic
N-Traditional markets groceries, sari-sari stores, supermarkets
NGO socio-civic orgs conducting medical mission and in various health agencies
of the government

Large independent distributors

Metro drug, Zuellig pharma, Marsman, Philusa
* Unilablargest pharmaceutical firm in the PH ; DLI Generics
Drugmakers, Inc

Services of sales rep/ salesman visit market sales and collection purposes, instore promotions and other mutual benefit of customers and suppliers

Services merchandising and product displays, customer assistance in

inventory and management control, customer handling, effective retailing,
updates on technical production information, quality control, and other
personal development programs
* Mercury Drug corporation- largest drugstore chain 200>
branches/franchises

Wholesalers &trading (CEBU) Majesty, Queen, Princess, Rose, Chings, Far Eastern
Drug, Diding
Pharmaceutical Distribution Channels set of Rx firmstakes titles or assist in
transferring title
Route along the right pharmaceutical products flow (Manufacturerfinal consumer)
Criteria for satisfactory products
(1) Standards of quality,
(2) Specification of packaging and formulation,
(3) Commercial stock levels at all times,
(4) Savings in terms of price, efficacy and safety,

(5) Service warranties

Place Distribution ensure availability and visibility of right product to right
target market through right distribution channel at the right place, time, condition
and cost.
Functions (1) physical transport and storing of drug products of various
therapeutic categories,
(2) financing the cost of drug distribution and related market channel services,
(3) Conducting sales and market activities to target clientele,
(4) Building a data bank of market information for marketing plans to work and
achieve desired goals,
(5) Ahead of competition

Major channel alternatives open to a drug company

Channel 1: DM (local drug trader) directly to DOH/GHU/Hospitals EU free
Channel 2: DM Sales rep Dispensing physician EU (consultation and
medicines are charged) (2MM)
Channel 3: DM Independent distributors/ Retailers EU (1MM)
Channel 4: DM wholesalerEU/ wholesaler retailer drugstore outlets EU
(2MM)
Channel 5: DM wholesaler, jobbers, retailers EU (3MM)
Multi-channels Marketing systems MDCIndependent franchise and own stores
Ace PH DOH, drugstores, own stores
Channels of Distribution Wholesalers, retailers, jobber (2) sales force,
franchises and branches, distributors and dealers (3) Dispensing physicians, DOH,
NGO
NTDC Groceries and SM, Sari2x stores, Boutiques and Gift shops 5SH, Post office
and Air cargo forwarders, convenience stores, school clinics, health and fitness
centers

Techniques of selecting, motivating, and evaluating channel members

Intensive distributors, Executive distributors (, Selective (DM X spread; preferred by
small & medium)

Decisions involved in setting up the physical distribution system