Subject: Sales and Distribution Management (SDM)

Topic : Distribution Mix

Under Guidance : Prof. Sameer Sonawane

Asad Sayyed (37)

Jayesh Phadale (47)
 Distribution Mix
• Distribution Mix

Distribution is one of the four elements of the marketing mix.

Distribution is the process of making a product or service available
for the consumer or business user who needs it. This can be done
directly by the producer or service provider, or using indirect
channels with distributors or intermediaries
 There are five major components in the distribution mix -

• Inventory
• Warehousing
• Communication
• Unitization (including packaging)
• Transport
 Inventory

Inventory means to goods and materials that are withheld

by a company for use in future. Such goods can include
various things such as raw materials, purchased goods etc.
The basic aim why an inventory is managed is because one
cannot predict sales forecast accurately.
 The few reasons for inventory management
are:-

1. Maintain the operations independent

2. There is lot of variations in product demand so to meet that

3. There should be flexibility in production scheduling

4. There is also a lot of variation in raw material delivery so to

manage that it is required
 WAREHOUSING

A warehouse can simply be defined as a planned space

usually a large commercial building for handling and
storage of goods. Therefore warehousing refers to all
the processes involved in the storage and handling of
goods in such a planned space.
 Communications
Two-way process of reaching mutual understanding, in which participants not only exchange
(encode-decode) information, news, ideas and feelings but also create and share meaning.

In business, it is a key function of management an organization cannot operate without

communication between levels, departments and employees.

For Example,
• Symbolic or verbal communication
• Machinery (newspapers, mail, email, telephones, television, radio, etc.) that people and
machines use to make contact and share information.
 Packaging
Packaging is the science, art and technology of enclosing or protecting products for distribution,
storage, sale, and use. 
It is also refers to the process of designing, evaluating, and producing packages.
Packaging contains, protects, preserves, transports, informs, and sells.

Why it is Important?
Once manufactured, our products are stored in drums, bags, intermediate bulk containers or tank
containers for delivery to our customers via all modes of transport.
And environmental, health and safety issues are paramount as chemicals can be hazardous if not
managed correctly.

Example: There is Primary packaging and secondary

packaging which may include
Packaging products include boxes, cartons, cans, bottles,
bags, envelopes, wrappers, and containers
 How it helps in distribution?

1. Handling. 
2. Warehouse stacking.
3. In-transit stacking.
4. Vehicle vibration.
5. Loose-load vibration. 
6. Rail switching and horizontal impacts. 
7. Temperature and humidity.
 Transportation
The moving of goods or people from one place to another.
In business, Transportation concerns the movement of products from a source such as a plant, factory, or
workshop to a destination such as a warehouse, customer, or retail store.

As an example, one location might be the place where you source raw materials or where you source
goods from a manufacturing facility. Such a location are called as node. There is then a series of such
nodes or locations to finally get to the end customer.

Generally, we use four main categories: Air, Rail, Road, and Water.
We can give several examples for each of these:
Air: aircraft, helicopter
Rail: train, high-speed train, maglev, tram, metro, light rail
Road: car, truck, bus, bicycle
Water: bulk ship, tanker, container ship, ferry
Pipeline transport: Oil/gas, Water
Fiber Optics: Data transmitted via Internet
 How Logistics is differ than Transportation

Logistics Transportation
• logistics refers to the totality of how inter- • While transportation focuses on the 'movement' of
related parts and events come together to goods from one place to the other.
achieve a stated goal.

• Transportation is a function of logistics operations,

• Logistics implies a broader spectrum of
which is focused purely on the definition and
operations related to the production and
deployment of transportation modes i.e. sea/road/air.
delivery goods and services.

So, transportation is one of the components of the

logistics.
Conclusion:
Undoubtedly we can say that Distribution mix is as important as other components in Marketing mix.
Distribution mix plays an important role to increase the value of the products through delivery of goods in
right quantity, at right place and right time. It serves as link between producers and consumers.

It provides the company with the following,

• Delivery of satisfaction
• Standard of living
• Value addition
• Communication
Thank You