MARKETING

MANAGEMENT

CHAPTER-18
DISTRIBUTION MANAGEMENT

Chapter 18
Distribution Management

Definition and Objectives of Distribution

Distribution Channels and its Objectives
Channel Design and Channel Selection
Task and Responsibilities of Channel Members
Franchising Systems

Himalaya Publishing House

Marketing Management
Biplab S. Bose

Chapter 18
Distribution Management

Objective of Distribution Activity

1. Convenience of consumers to get the product in time.
2. Choice of selection of goods.
3. Minimum incidence of breakage or damage during

4.
5.
6.
7.

transporting and storing. Breakage or damage intransit

and storage should be as per industry norms.
Optimal distribution cost.
Effective and sincere promotional activity of channel
members.
Effective display and storage of goods.
Minimum environmental hazards.

Himalaya Publishing House

Marketing Management
Biplab S. Bose

Chapter 18
Distribution Management

Types of Channel Flow Systems

1. Physical flow system
2. Title flow system
3. Payment flow system
4. Management communication flow system
5. Advertising communication and promotion flow

system
6. After sales service flow system and
7. Service flow system.

Himalaya Publishing House

Marketing Management
Biplab S. Bose

Channel Objectives

Chapter 18
Distribution Management

1. Cost efficient and customer satisfaction achievement of the best

possible coverage of the target market.
2. provide maximum product exposure and increase in customer
purchase efficiency
3. To provide distribution of goods and services with minimum losses
to the manufacturer.
4. To help in locating new markets, new segments and new market
product usage
5. To help in establishing new products in the market.
6. To help in retaining retail loyalty and brand loyalty.
7. To help in maintaining competitive advantage for the manufacturer
8. To help the manufacturer in providing after sales service, technical
and sales service for maintaining sales, market share and customer
confidence.

Himalaya Publishing House

Marketing Management
Biplab S. Bose

Chapter 18
Distribution Management

Channel Design and Channel Selection

1.
2.
3.
4.
5.
6.

Product characteristics
Market characteristics
Channel Member characteristics
Company characteristics
Competitor characteristics
Marketing environment characteristics

Himalaya Publishing House

Marketing Management
Biplab S. Bose

Chapter 18
Distribution Management

Task and Responsibilities of Channel

Members
1. Distribution of Products and Services to the
2.
3.
4.
5.
6.

Consumer Market
Transport
Storage
Promotion
Communicate
Relationship

Himalaya Publishing House

Marketing Management
Biplab S. Bose

Chapter 18
Distribution Management

Types of intermediaries
Drop shipment wholesalers
Agent middlemen
Brokers
Commission houses
Manufacturers agent
Selling agents
Resident buyers or Resident Representative

Himalaya Publishing House

Marketing Management
Biplab S. Bose