MANAGING SALES AND

DISTRIBUTION
BE-MBA Spring Semester Term 2
(March – May 2021)

Harjot Singh, LM TSM, TIET

4/23/2021
Channel Strategies

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Andersen Consulting Distribution
Strategy Pyramid

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 Distribution channel strategy

• Setting distribution objectives in terms of the

customer requirements
• Finalizing the set of activities that are required to be
performed to achieve the channel objectives
• Organizing the activities so that the responsibility of
performing the activities is shared among the
entities who are meant to perform these activities
• Developing policy guidelines for the smooth
functioning of the channel on a day to day basis
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 Distribution channel strategy
(Continued)

• Distribution channel management encompasses all

activities dealing with the distribution function of
the firm
• The distribution strategy provides guidelines for
decision making
• The distribution management function can be
viewed as happening in two phases: the ex ante
phase and the ex poste phase

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 Distribution channel strategy
(Continued)

• The ex ante phase involves all the activities that are

associated with the design and establishment of
the distribution channel. These activities actually
take place before the distribution channel actually
starts functioning.
• The ex poste phase involves managing the day to
day activities of the channel wherein the behavior
of the individual channel members are coordinated
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Channel Management tasks
Design of the
channel structure
Ex ante
Phase
Establishing the
channel
Distribution Channel Strategy
Channel Objective
Activity Finalization
Motivating Channel
Organizing the activities
Members
Developing Policy Guidelines
Ex Poste
Phase
Resolving Conflicts
among channel
members

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Channel Management Decisions

Selecting Channel Members

FEEDBACK
Motivating Channel Members

Evaluating Channel Members

 Channel Behavior & Organization
• The channel will be most effective when:
• each member is assigned tasks it can do best.
• all members cooperate to attain overall channel goals and
satisfy the target market.
• Each channel member’s role must be specified and
conflict must be managed.
 Service Level in terms of demand
of service output
• Customer Service Levels are expressed in terms of
Service Level Agreements (SLA)
• SLA relates to response time /turnaround time /
waiting time delivery time
• It relates to points of availability of service
• SLA also relates to other terms like carry-in/onsite
warranty
• It also relates to other terms like pricing, hours and
days of provision of service

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 Differences in Service Output Demand

(an example of segmentation in context of books)

Browser buying best-sellers to take on Student buying textbooks for fall semester at
vacation college
Service Output Service Output
Descriptor Demand Level Descriptor Demand Level
Bulk- “I‟m looking for some „good “I only need one copy of my
Medium High
breaking read‟ paperbacks to enjoy.” Marketing textbook!”
“I have lots of errands to run
Spatial “I don‟t have a car, so I can‟t
before leaving town, so I‟ll be Medium High
convenience travel far to buy.”
going past several bookstores.”
“I‟m not worried about getting “I just got to campus, but
Waiting and the books now… I can even classes are starting tomorrow
Low High
delivery time pick up a few when I‟m out of and I‟ll need my books by
town if need be.” then.”
“I want the best choice
Assortment “I‟m just buying what‟s on my
available, so that I can pick High Low
and variety course reading list.”
what looks good.”
Customer “I like to stop for a coffee when “I can find books myself, and
High Low
service book browsing.” don‟t need any special help.”
“I value the opinions of a well-
“My professors have already
Information read bookstore employee; I
High decided what I‟ll read this Low
provision can‟t always tell a good book
semester.”
from a bad one before I buy.”

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References
• Marketing Channels by Bert Rosenbloom, Cengage
Learning
• Basics of Distribution Management — A Logistical
approach by Satish K. Kapoor and Purva Kansal, PHI
Learning
• Distribution and Logistics Management — A Strategic
Marketing Approach by D K Agrawal, Macmillan
• Marketing Channels (MC) by
Coughlan/Anderson/Stern/El-Ansary,Pearson Education
• Google images

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SUGGESTIONS FOR TELECOM SERVICE PROVIDERS

• Telecom service providers need to put greater focus on

pre-paid consumers to prevent them from availing MNP
and churning.

• Telecom service providers need to focus more on the

functional dimension of service quality rather than the
technical dimension of service quality.

Thank You
• Service providers need to make greater efforts to retain
those customers who have been on the network for a
longer time and who have been contributing more to the
top line or bottom line.