LESSON 1.

SALES AND DISTRIBUTION should be aligned with its overall business

MANAGEMENT strategy and designed to meet its target market's
specific needs.
DISTRIBUTION MANAGEMENT
DISTRIBUTION CHANNELS
•Distribution management refers to the process of
overseeing the movement of goods from the a) Direct Distribution. Using this type of
supplier or manufacturer to the point of sale. distribution strategy, goods are sold by the
manufacturer directly to consumers
•Distribution management is key for marketing
b) Indirect Distribution. Indirect distribution
students because it ensures products are
involves at least one third party, often a
delivered efficiently to customers. It helps in
retailer, who purchases goods from a
planning, saving costs, and meeting customer
manufacturer and then sells them to
needs, which supports effective marketing
customers.
strategies.
FUNCTION OF SALES AND DISTRIBUTION
•It involves choosing distribution channels,
handling logistics, managing inventory, Sales and distribution management functions are
processing orders, and planning distribution to develop and implement strategies and policies
strategies. These tasks ensure products are to promote and sell the company's products and
delivered efficiently to customers. services.

SALES AND DISTRIBUTION MANAGEMENT 1. Warehousing and Inventory

Management. Managing inventory to
Sales and distribution management (SDM) is the
ensure that stock is available when
process of planning, organizing, and controlling
needed, avoiding stockouts and overstock
the activities of a company's sales force and
situations.
distribution network. The primary objective of
2. Order Processing and Fulfillment.
SDM is to ensure that the company's products
Involves managing the order-to-delivery
and services are readily available to customers
process, ensuring orders are fulfilled
when and where they need them.
accurately and on time
THE IMPORTANCE OF SALES AND 3. Transportation and Logistics. Choosing
DISTRIBUTION the most efficient and cost-effective mode

The effective management of sales and of transportation for product delivery.

distribution activities is essential for any 4. Channel Management. Maintaining

organization that wants to be successful in positive relationships with intermediaries in

today's competitive marketplace. An the distribution channel.

organization’s sales and distribution strategy

 5. Sales Management. Planning and 3. Distributor. This channel moves goods
controlling sales activities, including setting from the source or manufacturer to an
sales targets authorized distributor. For example, a Ford
factory distributes various Ford makes and
CHALLENGES OF SALES AND DISTRIBUTION
models to authorized Ford dealerships for
MANAGEMENT
sale to consumers or company fleets.
 Ensuring that goods and services are 4. Ecommerce. This is the newest and most
delivered to customers in a timely and disruptive distribution channel wherein
efficient manner goods and services are represented
 Managing inventory levels to meet virtually online and then distributed directly
customer demand while minimizing costs to the buyer. Ecommerce as a fourth
 Selecting and managing the most effective channel has led to rapid changes and
distribution channels makes distributors rethink their traditional
 Negotiating and managing contracts with strategies.
suppliers and distributors
THE THREE (3) DISTRIBUTION STRATEGIES
 Implementing and managing effective
pricing strategies 1. Mass. The mass strategy aims to
 Managing and motivating sales staff distribute to the mass market, e.g. to those
 Monitoring and analyzing sales and who sell to general consumers anywhere.
distribution data to identify trends and 2. Selective. The selective strategy aims to
opportunities distribute to a select group of sellers. For
instance, only to certain types of
BASIC CONCEPT OF DISTRIBUTION
manufacturers or retail sectors such as
MANAGEMENT
pharmacies, hair salons, and high-end
The Four 4 Channels of Distribution department stores.

1. Wholesaler. Goods are distributed from 3. Exclusive. The exclusive strategy aims to

manufacturers to wholesalers in this distribute to a highly limited group. For

channel. For example, liquor distillers example, the manufacturers of Ford

distribute their brands of liquor to vehicles sell only to authorized Ford

wholesalers dealerships, and producers of Gucci-brand

2. Retailer. Goods are distributed from the goods only sell to a narrow slice of luxury

manufacturer or wholesaler to retailers. goods retailers

For example, big-name designer clothing FACTORS INFLUENCING DISTRIBUTION

and accessories are distributed to higher- MANAGEMENT
end retailing chains such as Neiman
Marcus, Nordstrom, and Macy’s.
Many things can influence distribution
management. The five most common are:

1. Unit Perishability. If it is a perishable

item, then time is of the essence to prevent
loss.
LESSON 2. CONTROLLING SALES FORCE:
2. Buyer Purchasing habits. Peaks and
NAVIGATING EMERGING TRENDS AND
troughs in purchasing habits can influence
SOCIAL CONCERNS
distribution patterns and, therefore, varying
distribution needs that can be predicted.
SALES FORCE CONTROL
3. Buyer Requirements. The changes in a
retailer’s or manufacturer’s just-in-time  A good sales management program needs
inventory demands. a systematic control mechanism to monitor
4. Product Mix Forecasting – optimal the sales force performance and keep the
product mixes vary according to seasons costs under control..
and weather or other factors.  Sales force control mechanism keeps
5. Truckload Optimization. Relies on costs within budgeted limits but also brings
logistics and fleet management software to discipline to organizational processes of
ensure every truck is full to capacity and implementation.
routed according to the most efficient path.  Sales force control helps in budget
modifications and additional recruitment if
CONCLUSION
so required to achieve sales objectives.
Distribution management is essential for the
EMERGING TRENDS
efficient, cost-effective delivery of goods from
suppliers to consumers. It helps businesses meet  Digital Transformation and Automation

customer needs, boost satisfaction, and lower  Omnichannel Distribution and E-commerce

costs through effective channel selection, Integration

inventory control, and logistics. Companies must  Sustainability and Environmental Concerns

also handle challenges like market changes,  Collaborative Logistics and Partnership

contracts, and inventory management. With the

growth of e-commerce, adaptability and strategic DIGITAL TRANSFORMATION AND

planning are key. Overall, strong distribution AUTOMATION

management supports business success and  Artificial Intelligence (AI) and Machine

competitiveness. Learning
AI and machine learning are revolutionizing
distribution management by automating tasks,
analyzing data to predict demand, optimize Distributors are adopting sustainable practices to
routes, and personalize customer experiences. reduce their environmental footprint, meet
 Internet of Things (IoT) consumer expectations, and comply with
IoT devices are connecting physical assets to the environmental regulations. This includes using
internet, providing real-time visibility into inventory electric vehicles, optimizing transportation routes,
levels, product conditions, and shipment location and minimizing waste generation.
and status. This data enables businesses to  Sustainable Packaging
make more informed decisions, optimize Distributors are transitioning to sustainable
operations, and enhance customer service. packaging materials and reducing packaging
 Robotics and Automation waste to meet consumer demand for eco-friendly
Robots and automated systems are being products.
deployed in warehouses and distribution centers COLLABORATIVE LOGISTICS AND
to perform tasks like picking, packing, sorting, PARTNERSHIP
and transporting goods. This automation  Shared Resources
increases efficiency, reduces labor costs, and Distributors are increasingly collaborating with
minimizes errors. other companies to share resources, reduce
OMNICHANNEL DISTRIBUTION AND E- costs, and improve efficiency. This includes
COMMERCE INTEGRATION sharing transportation assets, warehousing
 Seamless Customer Experience facilities, and logistics expertise.
Omnichannel distribution integrates online and  Innovation
physical channels to provide a consistent and Collaborative partnerships can foster innovation
seamless customer experience, regardless of as companies combine their expertise and
how they choose to shop. This requires a insights to develop new products and solutions.
cohesive distribution strategy to manage IMPACT OF EMERGING TRENDS TO SALES
inventory and fulfill orders across multiple FORCE CONTROL
channels.  Adapting to Omnichannel Sales
 E-commerce Growth Distribution management must be flexible enough
The rise of e-commerce has transformed how to support omnichannel sales strategies, ensuring
distributors interact with customers. Integrating e- that the sales force is equipped to handle orders
commerce platforms is essential for reaching a from different channels and provide consistent
broader audience and providing a convenient customer experiences.
online purchasing experience.  Data-Driven Sales Force Optimization
SUSTAINABILITY AND ENVIRONMENTAL Data analytics can be used to identify high-
CONCERNS performing sales representatives, optimize sales
 Eco-Friendly Practices territories, and allocate resources effectively.
  Empowering Sales Teams with
Technology
Providing sales representatives with access to
real-time data, CRM tools, and mobile
applications can enhance their productivity and
effectiveness.