![Sales Management vs. Distribution Management ,[object Object],Distribution Management Organisation Strategy Marketing Strategy Zero SM Effective DM e.g. Mail Order companies Effective SM Zero DM e.g. Industrial product, capital equipment Most organisations fall in between](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
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- 1. by Milind M. Shahane 2011-12 Distribution Management
- 9. Sales Management vs. Distribution Management Decision on Share of SM vs. DM in various areas Share will depend on a) Nature of product b) Type of middlemen c) Customer characteristics d) Competitive situation e) Company objectives / nature f) Environment 7) Feedback 6) Debtors / receivables 5) Inventory at various levels 4) Non-personal promotion 3) Personal promotion 2) Prospecting % share % share 1) Sales goal / objectives Distribution Management Sales Management Task / Area
- 23. Marketing Channels - Efficiency M1 M2 M3 C1 C2 C3 Direct Marketing Through Channels 9 contacts M1 M2 M3 C1 C2 C3 D 6 contacts
- 100. Channels with PLC Time Sales Introductory Stage Exclusive Channels Growth Stage Hi- vol Mass Channels Maturity Stage Mass Low Cost ChannelsLow Service Levels Decline Stage Low Cost Channels Min Service Levels
- 113. Examples 1) Financial Services – Banking, insurance, mutual funds, loans Distribution Value Add Product Complexity High Low Commodity Customised Loans Internet ATM Phone Banking Mutual Funds Insurance Private Banking Personal Banking Agents Housing Loans Branches
- 114. Examples 2) Computer Companies – Laptops, Desktops, Printers, Servers, Standard software, IT Systems, IT Services Distribution Value Add Product Complexity High Low Commodity Customised Servers Special Retailers Laptops Electronic stores Desktops Printers IT Systems IT Services Agents Dealers
- 133. Retail Life Cycles (RLC) Time Volume Super markets Department stores Traditional stores Small stores
- 135. Physical Distribution Sales forecast Prodn. Plnng. Material Procur. Distrib- Ution Prog. Order Proc. Inventory Mgmt. Receiving Mat. Inbound Transport Packag- ing Plant WH Storage Shipping Outbound Transport Field WH Sales / Order Execution Process Customer Service
- 136. Physical Distribution Physical Distribution Customer Service Location Analysis Order Processing Packaging Inventory Control Transport- ion Material Handling Ware Housing IT / Logistics Information System
- 139. Physical Distribution Marketing Activities MR, Pricing Promotion Marketing Physical Distribution Interface Service Levels Order Processing Packaging Distribution Channels Physical Distribution Activities Transportation Material Handling Inventory Control Warehousing Physical Distribution Production Interface Location Material Processing Scheduling Production Activities Production Planning Manufacturing Quality Assurance