Distribution Management

Introduction to Distribution & Market Flows

Flow of Session
Learning triangle (5min)
Q n A from pre-reading (10min)
Channel flows at a glance
Physical possession v/s ownership
Flow of promotions
Bi-directional flows
Class Activity (20 min)
Conclusion

The Learning Triangle
Why: Significance of
a Concept
To understand
various
responsibilities of a
marketing channel
and learn how
information, product
and money flows in
a channel
Why
Student’s final Purpose: Placements
> Sales Officer Trainees at Berger Paint (4.5 lpa)
> Customer Development officer at Colgate (5
lpa)
> Territory Manager at Crystal Crop (4.5 lpa)
> Business Alliance Executive - IB at Lexi Pen (5
lpa)
> Area Sales Executive at Videocon (4 lpa)
> Sr. Officer Executive Sales at Anchor Electrical
(4 lpa)
> Sales & Distribution manager at Citibank (4.5
lpa)
Purpose > Area Sales Manager at Voltas (6 lpa)
> Sales Manager at JK Cement (3.5 lpa)
Understanding
Where: Application of
Need for
Distribution Concept
Channels Understanding how channel
flows vary across different
channel partners helps to
define accountability and cost
Where of a channel
Channel flows at a Glance
 Physical Possession v/s Ownership

• Physical possession of products can be given to non-

merchandisers & facilitators too
• Ownership only transfers between manufacturers,
merchandisers and customers
 Flow of Promotion

Uni-directional flow from manufacturer to customer

Facilitators such as Ad Agency & Marketing consultants
involved
 Bi-Directional Flows

RISKING

Channel flows for which both channel partners and consumers are
responsible are –
◦ Negotiations – time & legal costs
◦ Financing – Credit terms and TnC of sales
◦ Risking – Price guarantees, warranties, insurance, repair, after sale
service costs
 Ordering & Payment

Backward channel flows

Ordering – Order processing costs
Payment – Collections, bad debt costs
Conclusion

Types of channel flows

Physical possession v/s ownership
How channel members promote products
How channel partners are responsible for
negotiations and financing
How ordering and payments are conducted