DISTRIBUTION CHANNELS 1
MKT 405: Distribution Management
M Wahidul Islam
Summer 2014
Planning,
Forecasting
& Budgeting
Warehousing
and Logistics
Channel
Information
Systems
Sales Force
Management
Elements of
Distribution
Management
Distribution
Channels
Product
Pricing and
Promotion
Product
Visibility
WHAT IS A DISTRIBUTION CHANNEL?


A group of people and firms involves in the
transfer of title or ownership as the product
moves from the producer to the ultimate
consumer
“the structure of intra company organization
units and extra company agents, dealers,
wholesalers and retailers through which a
commodity, product or service is marketed” –
American Marketing Association
KEY QUESTIONS FOR
DISTRIBUTION CHANNEL
Who
will be the Channel
Members?
Who
is driving the Channel?
What
What
is the Channel Format?
would be the Patter of
Distribution?
DISTRIBUTION CHANNEL MEMBERS
Company Owned
Distribution Center
Distributors/
Dealers /
Stockiest
Carrying and
Forwarding Agents
Owned or
Contracted
Consignment
Selling Agents or
General Selling
Agents
Exclusive /
Shared
Value Added
Resellers
Wholesalers
Direct Marketing
Sales force
Retailers
Franchises
DISTRIBUTION CHANNEL MEMBERS

C&FA




Consignment Selling Agents (CSAs) or
General Selling Agents (GSAs)



Facilitators
Do not pay for the product or hold physical possession of
the goods. Merely stores in a central location and then
pass it on to the distributor
Example: Edible Oil Industries
Sales the goods on behalf of the company and transfer
amount to the producer
Example: Shipping Companies, Airlines
Companies
Value Added Resellers


Purchases incomplete product or kit and add value to
assembling it and then selling to customers
Example: Personal Computers, Bicycles,
Producer
CSAs / GSAs
Direct
Marketing
Team
Central
Distributor
Regional /
Market
Specific
Distributor
Wholesalers
Retailers
Customers
Authorized
Reseller
Own Branded
Store
PATTERS OF DISTRIBUTION

It represents the service level that the organization
provides to its customers
Intensive
Distribution
• The strategy is to make the product available to
as many customer as possible
• Example: Unilever, GP, BATB, FMCG
Products
Selective
Distribution
• Few carefully selected outlets are permitted to
keep company’s products
• Example: QUBEE, HP, Nikon
Exclusive
Distribution
• Only one or two outlets in a market may keep
the company’s product
• Example: Franchises, BATA, Transcom,
KFC
REFERENCES

Chapter 8 – Distribution Management and the
Marketing Mix

Havaldar K. and Cavale V. M. (2011) Sales and
Distribution Management – Text and Cases (2nd
Edition) Delhi: Tata McGraw-Hill Education Private
Limited
END