Introduction to Distribution Management

Abstract

Distribution management is all about reaching the product as near to the customer as possible and making the product and service available to the customer. The products must be available to the customer at the right place and at the right time and with an assortment which gives a lot of choice to the customers. The intermediaries in the marketing channel performs a lot of activities for the manufacturer and serves as the go-between of the manufacturer as well as the consumer. The value addition of the distribution system is tremendous and that is why it is now a very important component of the marketing strategy. It is the fourth P in the 4Ps of the marketing mix and has not been given much importance traditionally. However, now the situation has changed primarily because it is very difficult nowadays to differentiate in the market through the use of product, price, and promotions alone. Distribution systems can help the company in differentiating themselves from the competitors. The distribution system understands the end-customers very well and thus guides the company in offering the best product mix to the consumers. The distribution system also expects a lot of support and motivation from the company and when the company is able to do that well, a long-term relationship is formed. This is crucial as the then the commitment level of the system goes up and tends to support the company and the brand in every possible manner. It has been seen time and again that when the long-term relationship forms, the company gets a very positive response and return from the market. The idea here is that the distribution systems should not be treated as a combination of some marketing tactics, but a significant and important part of the company's strategic intent and goals.