Niroshan J Pieries

Distribution Strategy & Control

• What is Distribution
• Types of Distribution
• Channel Management
• Promotions, Advertising and Distribution
• The Marketing Mix and Distribution
Distribution

Group of individuals or organizations

(intermediaries) that move goods
from the producer to the consumer
or industrial user of the product.

It is the way an organisation gets its

product to the consumer.
Supply Chain
Functions of a Distribution Channel
Channel Structures
Channel Structures
Producer
Producer Producer
Producer

Agent

Agent Distributor

Distributor

Customer
Customer
Customer Customer
Channel Structures
Producer Producer
Producer
Producer
Agent
Wholesaler

Wholesaler Retailer
Retailer
Retailer
Customer
Customer
Customer
Customer
Distribution Strategy

Brassington and Pettitt (2006) suggest market coverage is

'about reaching the end customer as cost effectively and
efficiently as possible, while maximizing customer
satisfaction.

Selective Exclusive Intensive

Factors Influencing Channel Strategy
International Marketing
Distribution Across the Globe
Factors Influencing Channel Strategy
Distribution Channel
Joint Venture
Types of JVs
Digital Virtual Channels
Appointing an agent
Managing Distribution – 5 Cs
Does MM have an impact on Distribution

To be effective, an
organization must
design the
marketing mix to offer
synergy and
consistency
with its channel
members.
MM & Distribution - Local
MM & Distribution - Global
Competitor Strategies in Distribution

• Horizontal Vertical

Channel
Intertype
System
Ethical Aspects of Distribution
Channel Innovation
Who is a Intermediary
Types of Intermediaries

Whole-seller Retailer Distributor/Dealer

Franchisee Licensee Agent/Broaker

VAS by an Intermediary
Task of an Intermediary
Marketing Intermediary
Promotions Intermediary
Marketing Communications
“A management process through which
an organization engages with its various
audiences. By understanding an
audience’s communications environment,
organizations seek to develop and
present messages for their identified
stakeholder groups before evaluating and
acting upon the responses. By conveying
messages that are of significant value,
audiences are encouraged to offer
attitudinal and behavioral responses.”
(Fill, 2009)
Six Market Framework
 What is Internal Marketing?
“Internal marketing involves a planned effort to
overcome organizational resistance to change and
to align, motivate and integrate employees towards
the effective Implementation of corporate and
functional strategies”
(Ahmed and Rafiq, 1993).
The aspects of Internal Marketing
• Fostering a marketing ethos throughout the organization, including
evangelizing the benefits of the customer orientation.
• Clarifying corporate aims and goals.
• Providing a clear sense of purpose and direction.
• Empowering and supporting staff to take decisions related to acquiring
and keeping customers.
• Recognizing employees who deliver excellent service as valued internal
customers.
• Adopting a partnership approach to corporate governance.
• Fostering relationships with employees that motivates them and
encourage loyalty.
• Assuming that customer feedback is of interest to everyone and that
everyone is involved in organizational success.
 Benefits of IM
• Top management become more
aware of their own limited
perspective of company activities.
• Encourages a decentralized approach
to management.
• Work in sync and synergy. Motivating
staff
• Greater integration creates more
cohesive teams
• Marketing and other departments will
improve their understanding of each
other
• Organization-wide customer focus
leads to more satisfied customers.
• Staff who deal directly with customers
are able to influence organizational
policy in areas that affect their work
Why Organization Conflicts?
 Marketing Audit
1. To identify the organization’s
current market position.
2. To understand the
opportunities and threats it
faces in its environment.
3. To clarify its ability to cope
with demands in its
environment.
 Factors Implementing Internal
Marketing
• Internal customer segmentation
• Choice of internal communication
tools
• Building supportive working
relationships
• Staff empowerment and
involvement
• Personal development and training
• Recognition and rewards
• Performance measures and
feedback
 Internal Marketing
Tools

Staff/House Internal Digital

Magazines Newsletter Communication

Team building Employee

Staff Meetings
Activities Awards

Video
Suggestion box Internet/Intranet
Conferencing
 The Heart of
Communication is
DRIP
Differentiate, Remind,
Inform & Persuade
DRIP Model
MC Plan - Framework
Campaign Planning
Context
MC Objectives
Communication Strategy
Integrated Communication Plan
Loyalty Ladder
 Marketing Promotional Mix
Ambient
Advertising

Product
Placement
Ex: Movies

WOM
 Marketing Promotional Mix
• Allows complex products to be explained
Personal selling • Ex : sale of software

Trade Ads • Industries Having their specific journal or Newspaper

• Direct mail in the B2B sector needs to be highly targeted and

Direct Marketing targeted needing considerable research

Sales Promotions • Incentives, product offers

• Where potential buyers come specifically to see the new

Exhibitions product range Ex :

PR • PR is key and sometimes beyond control

Internet • Increasingly becoming an essential medium.

Communication Purpose
 Categorization of Promotional Activity

BTL
ATL
Includes sales
Activity relates toPermission
promotion, public
promotional Marketing
relations and
activities carried out
personal selling.
through mass media
Database Marketing,
such as press,
email, Direct mail,
magazines, radio, TTL
Affinity Marketing,
outdoor, cinemas,
Event sponsorships
banners and search
are some of the
engines.
areas.
ATL Vs BTL
Promotional Mix (Mediums)
Consumer

Distribution
Channels

All
Stakeholder
 Media Options
Broadcast Print Outdoor Ambient

Transit New Media In store Cinema

Experimental
Fairs TV Stealth Mktg
Ex : Flash Mob

Guerilla Mktg
Media Comparison

Cost

Credibility

Communication
Effectiveness

Control
Purchase Decision Sequence
 Factors deciding Medium

Size of the Size of the

Market Organization

Target Complexity of
Audience Purchase

Role of
Intermediaries

Decision making process

Corporate Reputation
“Corporate reputation is
the overall estimation in
which a company is held by
its constituents. A
corporate reputation
represents the ‘net’
affective or emotional
reaction – good, bad, weak
or strong – of customers,
investors, employees and
general public to the
company’s name.”
-Fombrun 1996-
 Corporate Reputation
Social Image

Financial
Image

Product
Image

Recruitment
Image
 Types of Communication for
Reputation
• Management communications – Aimed at the internal market
and in some cases includes connected stakeholders such as
channel partners.
• Marketing communications – In relation to the message that
supports building awareness and sales of products, services
and brands
• Organizational communications – Aimed at corporate
audiences such as shareholders, financial views, regulatory
bodies and investment analysts.