Mk0010
Master of Business Administration- MBA Semester 3
MK0010 – Sales Distribution And Supply Chain Management
(4 credits)
(Book ID: B1220)
ASSIGNMENT- Set 1
1. Describe the role of distribution channel. List the factors in the selection of distribution channel.
Buying a computer in the post, petrol at a supermarket, mortgages over the phone and phones themselves from vending machines are just some innovations in distribution which create competitive advantage as customers are offered newer, faster, cheaper, safer and easier ways of buying products and services.
Without distribution even the best product or service fails. Author Jean-Jacques Lambin believes a marketer has two roles: (1) to organise exchange through distribution and (2) to organise communication.
Physical distribution, or Place, must integrate with the other ‘P’s in the marketing mix. For example, the design of product packaging must fit onto a pallet, into a truck and onto a shelf; prices are often determined by distribution channels; and the image of the channel must fit in with the supplier’s required ‘positioning’. You can see how Coca Cola further integrate the timing of distribution and promotion in the Hall Of Fame later. In fact, they see distribution as one of their “core competencies”.
Distribution is important because:
Firstly, it affects sales – if it’s not available it can’t be sold. Most customers won’t wait.
Secondly, distribution affects profits and competitiveness since it can contribute up to 50 percent of the final selling price of some goods. This affects cost competitiveness as well as profits since margins are squeezed by distribution costs.
Thirdly, delivery is seen as part of the product influencing customer satisfaction. Distribution and its associated customer service play a big part in relationship marketing.
Decisions about physical distribution are key strategic decisions. They are not short term. Increasingly it involves strategic alliances and
MK0010 – Sales Distribution And Supply Chain Management
(4 credits)
(Book ID: B1220)
ASSIGNMENT- Set 1
1. Describe the role of distribution channel. List the factors in the selection of distribution channel.
Buying a computer in the post, petrol at a supermarket, mortgages over the phone and phones themselves from vending machines are just some innovations in distribution which create competitive advantage as customers are offered newer, faster, cheaper, safer and easier ways of buying products and services.
Without distribution even the best product or service fails. Author Jean-Jacques Lambin believes a marketer has two roles: (1) to organise exchange through distribution and (2) to organise communication.
Physical distribution, or Place, must integrate with the other ‘P’s in the marketing mix. For example, the design of product packaging must fit onto a pallet, into a truck and onto a shelf; prices are often determined by distribution channels; and the image of the channel must fit in with the supplier’s required ‘positioning’. You can see how Coca Cola further integrate the timing of distribution and promotion in the Hall Of Fame later. In fact, they see distribution as one of their “core competencies”.
Distribution is important because:
Firstly, it affects sales – if it’s not available it can’t be sold. Most customers won’t wait.
Secondly, distribution affects profits and competitiveness since it can contribute up to 50 percent of the final selling price of some goods. This affects cost competitiveness as well as profits since margins are squeezed by distribution costs.
Thirdly, delivery is seen as part of the product influencing customer satisfaction. Distribution and its associated customer service play a big part in relationship marketing.
Decisions about physical distribution are key strategic decisions. They are not short term. Increasingly it involves strategic alliances and