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Team Members:Suman Roy Md.Abbas Subhash Anand Somnath Dubey Srikanth V
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Definition: Physical Distribution

Physical Distribution defined as a set of

activities concerned with the physical flows with materials, components and finished goods from producer to channel intermediaries and consumers

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Physical Distribution System.

Supply Chain Mgt.

Inventory Handling

Order Processing

Warehou -sing

Transport ation

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Strategies Of Logistics/Physical Distribution

Customer Service What level of customer service should be provided?

Order Processing
How should the orders be handled? includes order entry in which the order is actually entered into a companys information system; order handling, which involves locating, assembling, and moving products into distribution; and order delivery

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 Inventory Control How much inventory should be held? Ensures that a company neither runs out of manufacturing components or finished goods nor incurs the expense and risk of carrying excessive stocks of these items. Warehousing Where should the inventory be located and how many warehouses should be used? Warehouses are used to store goods until they are sold Distribution centers are designed to efficiently receive goods from suppliers and then fill orders for individual stores or customers
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 Transportation
will the products be transported? the method or mode a company should utilize when moving products through domestic and global channels; the most common modes of transportation are rail, truck, air, and water

Materials handling How will the products be handled during transportation?

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Distribution
Distribution is one of the four aspects of

marketing. A distributor is the middleman between the manufacturer and retailer. After a product is manufactured it is typically shipped (and usually sold) to a distributor. The distributor then sells the product to retailers or customers

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Distribution Channels
To reconcile the needs of producers and

consumers To improve efficiency by reducing the number of transactions and creating bulk To improve accessibility by lowering location and time gaps between producers and consumers To improve specialist services to customers
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Channel Objectives
Marketing channels exist to create utility for

customers

Place utility - availability of a product or service in a location that is convenient to a potential customer Time utility - availability of a product or service when desired by a customer Form utility - availability of the product processed, prepared, in proper condition and/or ready to use Information utility - availability of answers to questions and general communication about useful product features and benefits

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Distribution Channels
Consumer

Channels/B2C

B2B

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 C2B

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Channel Strategy
Channel strategy decisions involve selection of the most effective distribution channel most appropriate level of distribution intensity and degree of channel integration

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Channel Strategy

Channel Selection

Market factors

Buyer behavior, buyer needs, willingness of channel intermediaries, location of costumers Producer factors Lack of financial resources, product mix, desired degree of control
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 Product factors

Direct distribution Competitive factors Innovative approach, sales force or producer-owned distribution network, direct marketing

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Distribution Intensity Intensive Distribution Aims to achieve saturation coverage of the market by using all available outlets
Selective Distribution

A producer uses a limited number of outlets in a geographical area to sell its products
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 Exclusive Distribution

Only one wholesaler, retailer or industrial distributer is used in a geographic area. Channel Integration Conventional marketing channels Hard bargaining and, occasionally, conflict
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 Franchising

A producer and channel intermediaries agree each members rights and obligations
Channel ownership

Total control over distributor activities

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Channel Management
Channel management is an effective implementation of the

key channel strategy decisions Channel management, as a process by which a company creates formalized programs for selling and servicing customers within a specific channel, can really impact your businessand in a positive way! To get started, first segment your channels by like characteristics (their needs, buying patterns, success factors, etc.) and then customize a channel management program that includes:

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Process Of Channel Management

Goals. Define the specific goals you have for each channel

segment. Consider your goals for the channel as a whole as well as individual accounts. And, remember to consider your goals for both acquisition and retention. Policies. Construct well-defined polices for administering the accounts within this channel. Be sure to keep the unique characteristics of each segment in mind when defining policies for account set up, order management, product fulfillment, etc. Products. Identify which products in your offering are most suited for each segment and create appropriate messaging. Also, determine where your upsell opportunities lie.
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 Sales/Marketing Programs. Design support programs for

your channel that meet THEIR needs, not what your idea of their needs are. To do this, you should start by asking your customers within this segment, how can we best support you in the selling and marketing of our products? That being said, the standard considerations are product training, co-op advertising, seasonal promotions, and merchandising. Again, this is not a one-size fits all, so be diligent about addressing this segments SPECIFIC needs in these areas.

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 Managing conflict

Sources of channel conflict Differences in goals Differences in desired product line Multiple distribution channels Inadequacies in performance

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 Managing Conflict

Avoiding and resolving conflict Developing a partnership approach Training in conflict handling Market partitioning Improving performance Channel ownership Coercion
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Assessing Marketing Channel Performance & Distribution

Channel member performance represents the degree to

which the channel member engages in behavior that contributes to the fulfillment of the channel leaders objectives As previously noted, firms have become increasingly reliant upon channel members for the efficient and effective performance of marketing functions. Moreover, the level of performance attained by channel members is pivotal for a firms achieving a competitive advantage Thus, by assaying the performance of channel members, manufacturers can discern how successful they have been in implementing channel strategies as well as achieving their distribution objectives.
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