SAMAR COLLEGE

Catbalogan City, Samar

Tel. Nos. (055) 251- 3021, 543-8381, Fax (055) 251-3021

COLLEGE OF BUSINESS AND MANAGEMENT

Individualized Learning Material (ILM)

in

MM Prof 4
(DISTRIBUTION MANAGEMENT)

ROBERTO VELASCO MABULAC

Instructor

SAMAR COLLEGE
Catbalogan City, Samar

[email protected]/SamarColleges,Inc./CatbaloganCity
 Tel. Nos. (055) 251- 3021, 543-8381, Fax (055) 251-3021

COLLEGE OF BUSINESS AND MANAGEMENT

Course : MM Prof 4 (DISTRIBUTION MANAGEMENT)

Instructor : ROBERTO V. MABULAC
Program : Bachelor of Science in Business Administration (BSBA)
Units : 3 Units
Schedule : 4:00-5:30 PM / TTh / Anne 8

Course Description : Distribution of products and service includes all of the activities that are involved in delivering a
suitable offering to end-customers following the most efficient way. However, in the way of delivering products and services to
the end users, there are some intermediaries or middlemen. These intermediaries or middlemen are key elements of supply
networks. Distribution relates to selection of those key points or places of supply networks and this forms an important part of
marketing strategy. These supply network points or places means making goods and services available in the right quantities
and qualities at the various locations when customers want them. Therefore, distribution management reflects strategic
marketing aspects. Distribution management is the systematic management to optimize the efficiency of overall activities of
movement of goods from supplier or manufacturer to point of sale.
  This advance marketing course elaborately provides principles, concepts, practices, and strategies of distribution
management which includes marketing channel analysis. This course covers the operations aspects of supply network analysis.
It will cover concepts of distribution and importance of chain management. The course will also discuss design of distribution
structures and explain the meaning and importance of distribution planning and the role of middlemen. It addresses and
analyzes alternative channel structures and relevant criteria of choice. In summary, the course will focus on the understanding of
productivity drivers of distribution effectiveness and performance evaluation of channel management.

ADVERTISING MANAGEMENT
BRIEF CONTENTS
PRELIMINARIES
WEEK TOPIC
 UNDERSTANDING THE SUPPLY CHAIN
1  SUPPLY CHAIN PERFORMANCE: ACHIEVING STRATEGIC FIT AND SCOPE
2  SUPPLY CHAIN DRIVERS AND METRICS
3  DESIGNING DISTRIBUTION NETWORKS AND APPLICATIONS TO ONLINE SALES
4  NETWORK DESIGN IN THE SUPPLY CHAIN
 PROCESS
5-6  PLANNING
 ORGANIZING
 LEADING
7  CONTROLLING
 STAFFING
8  SALES METHODS

FOR THE LEARNER

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 Welcome to the Advertising Management Individualized Learning Material (ILM) on the introductory study of
advertising from the specific point of view of Account Management within the advertising agency. This ILM was designed to
provide you with fun and meaningful opportunities for guided and independent learning at your own pace and time.
You will be enabled to process the contents of the learning resource while being an active learner.
This ILM has the following corresponding parts:

 This is the first part of the Individualized Learning Material (ILM). In this part
LEARNING OUTCOMES shows the enabling objectives with Knowledge, Skills and Attitude. The
LEARNING OUTCOMES must be unpacked from the Most Essential
Learning Competencies (MELCs).

 This is the second part of the ILM. In this part, the teacher can give an
activity that will help the learner recall his/her previous learning. Also, it will
facilitate if the said activity will help bridge the learner's past experiences
with the new lesson. The association with “a previous learning” does not
automatically mean the previous lesson but acquired knowledge that will
REVIEW QUESTIONS serve as clue or springboard to process the new one.

 The idea here is to come up with an activity that will cater to both the review
and motivation parts of the usual lesson.

 In this part of ILM, the new lesson will be introduced. A number of authentic
materials may be used to introduce the lesson. Also, important concepts be
DISCUSSIONS
emphasized here. The teacher can present the lesson in a creative way
instead of just simply giving out the lesson or concepts.

 In this part of ILM the teacher can make use of graphic organizers in crafting
exercises or any activity where the learner is still guided even though it is
independent learning on their end.
SKILL DEVELOPMENT  The teacher may give additional exercises that will enable the learner
transfer new knowledge or skill into real-life experience or situation and
engage in higher cognitive thinking, such as problem-solution, cause-effect,
etc.

 This part will assess whether the learning competency is achieved in a form
of formative assessment to check the understanding of the student of the
ASSESSMENT lesson presented in the ILM. The teacher may use different types of tests
tailored-fit to the content.

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  This is the last part of ILM wherein the teachers will ask questions to
students to reflect on his/her learning, the problems encountered while
utilizing the ILM.

Sample questions:
REFLECTION
1. What important concepts have you gained in the lesson?
2. What are the difficulties have you encountered in the process of
learning?
3. How will you apply the lesson learned in real-life situation?

SOURCES  This part will compile the references used in the ILM. IPA format will be
used to cite the references and separate the list of books, electronic and
websites.

ANSWER KEY
 This contains answers to all activities in the module.
 NB: correct and possible answers will be given in the next module.

 LESSON 1 MARKETING CHANNEL CONCEPT

LEARNING OUTCOMES

After going through this ILM, you are expected to:

 Realized that new-internet based technologies have created a metamorphosis in marketing channels and
distribution systems.
 Recognized that today’s customers expect more choices as to how, when and where products and services are
made available to them.
 Apply the definition of marketing channels from a managerial perspective.

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 REVIEW QUESTIONS

DIRECTIONS: On a half (1/2) sheet of collegiate paper, answer the following questions.

1. Why do customers expect more choice and flexibility as to how products and services are made available to them?
2. Multi-channel strategy that provides more choice to customers has become a virtual imperative today for more and
more firms. What are some of the key challenges firms face in pursuing a multi-channel strategy?
3. How does management perspective of the marketing channel differ from some other views of the channel?
4. What is the distinction between inter-organizational management for a producing or manufacturing firm?
5. Is management of the marketing channel the only instance of inter-organizational management for a producing or
manufacturing firm?

DISCUSSIONS

INTRODUCTION

 We are at the point today where most people are familiar with the terms SUPPLY CHAIN and LOGISTICS but don’t
really know that much about them. In this book, we not only define the supply chain but also offer insight into its various
components, tools, and technology to help improve your understanding so that you can use it as a competitive tool in
your business.
 Because supply chain and logistics costs can range from 50% to 70% of a company’s sales (with trillions spent on it
worldwide), organizations of all sizes both perform and are interested in this function. Therefore, understanding and
implementing an efficient supply chain strategy can prove critical to both an employee’s and a company’s success.

WHAT IS DISTRIBUTION MANAGEMENT?

 DISTRIBUTION MANAGEMENT refers to the process of overseeing the movement of goods from supplier or
manufacturer to point of sale. It is an overarching term that refers to numerous activities and processes such as
packaging, inventory, warehousing, supply chain, and logistics.
 DISTRIBUTION MANAGEMENT is an important part of the business cycle for distributors and wholesalers. The profit
margins of businesses depend on how quickly they can turn over their goods. The more they sell, the more they earn,
which means a better future for the business. Having a successful distribution management system is also important
for businesses to remain competitive and to keep customers satisfied.

UNDERSTANDING DISTRIBUTION MANAGEMENT

 Distribution management is critical to a company's financial success and corporate longevity. Executing it successfully
requires effective management of the entire distribution process. The larger a corporation, or the greater the number of
supply points a company has, the more it will need to rely on automation to effectively manage the distribution process.

 Modern distribution management encompasses more than just moving products from point A to point B. It also
involves gathering and sharing relevant information that can be used to identify key opportunities for growth and
competitiveness in the market. Most progressive companies now use their distribution forces to obtain market
intelligence which is vital in assessing their competitive position.

 There are basically two types of distribution:

1. commercial distribution (commonly known as sales distribution) and

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 2. physical distribution (better known as logistics). 

 Distribution involves diverse functions such as customer service, shipping, warehousing, inventory control, private
trucking-fleet operations, packaging, receiving, materials handling, along with plant, warehouse, store location
planning, and the integration of information.

 The goal is to achieve ultimate efficiency in delivering raw materials and parts, both partially and completely finished
products to the right place and time in the proper condition. Physical distribution planning should align with the overall
channel strategy.

ADVANTAGES OF A DISTRIBUTION MANAGEMENT STRATEGY

 Aside from keeping profits up, there are many reasons a company may want to use a distribution management
strategy. First, it keeps things organized. If there was no proper management system in place, retailers would be
forced to hold stock in their own locations—a bad idea, especially if the seller lacks proper storage space.

 A distribution management system also makes things easier for the consumer. It allows them to visit one location for a
variety of different products. If the system didn't exist, consumers would have to visit multiple locations just to get what
they need.

 Putting a proper distribution management system in place also alleviates any potential for errors in delivery, as well as
the times products need to be delivered.

IMPORTANT: Businesses can adopt distribution management strategies through electronic platforms,
which can help simplify the process and boost product sales.

SUPPLY CHAIN DEFINED

The first thing we need to do is get some definitions out of the way. The terms SUPPLY CHAIN and SUPPLY CHAIN
MANAGEMENT (SCM) should be separately defined because they are sometimes (mistakenly) used interchangeably.
 The SUPPLY CHAIN itself is a system of organizations, people, activities, information, and resources involved in the
planning, moving, or storage of a product or service from supplier to customer (actually more like a “web” than a
“chain”). Supply chain activities transform natural resources, raw materials, and components into a finished product
that is delivered to the end customer.
o For example, I once heard a major paper goods manufacturer describe their supply chain for toilet paper as
ranging from “stump to rump.”
 In contrast, SUPPLY CHAIN MANAGEMENT, as defined by the Council of Supply Chain Management Professionals
(CSCMP), “encompasses the planning and management of all activities involved in sourcing, procurement, conversion,
and logistics management. It also includes the crucial components of coordination and collaboration with channel
partners, which can be suppliers, intermediaries, third-party service providers, and customers.”

DISTRIBUTION MANAGEMENT AS A MARKETING FUNCTION

 The fundamental idea of distribution management as a marketing function is that the management of distribution
happens in an ecosystem that also involves the consideration of the following:

 PRODUCT: Not always a tangible object, product can also refer to an idea, music, or information.
 PRICE: This refers to the value of a good or service for both the seller and the buyer, which can involve both
tangible and intangible factors, such as list price, discounts, financing, and likely response of customers and
competitors.
 PROMOTION: This is any communication used by a seller to inform, persuade, and/or remind buyers and
potential buyers about the seller’s goods, services, image, ideas, and the impact it has to society.

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  PLACEMENT:  This refers to the process that ensures the availability, accessibility, and visibility of products
to ultimate consumers or business users in the target channels or customers where they prefer to buy.
 Effective distribution management involves selling your product while assuring sufficient stocks in channels
while managing promotions in those channels and their varying requirements. It also involves making sure  a supply
chain is efficient enough that distribution costs are low enough to allow a product to be sold at the right price, thus
supporting your marketing strategy and maximizing profit.

KEY TAKEAWAYS

 Distribution management is the process of overseeing the movement of goods from supplier or
manufacturer to point of sale.
 It refers to activities and processes such as packaging, inventory, warehousing, supply chain, and
logistics.
 Adopting a distribution management strategy is important for a company's financial success and
corporate longevity.
 Distribution management helps keep things organized and keeps customers satisfied.

SKILL DEVELOPMENT

DIRECTIONS: Written exercise. On a whole sheet of collegiate paper, explain the following.
1. Operating the channel does not imply total control of the channel. Can you think of an example where the channel
manager does not have total control of the channel but is still able to operate it?
2. Discuss the relationship between channel management and the marketing mix?
3. What is the difference between channel strategy and logistics Management?
4. Identify the various flows in marketing channels and the direction of the flows. Why is the concept of channel flows
useful for a better understanding of channel management?
5. Could the product flow operate independently from other channel?

Score Completion Accuracy Comprehension Organization Conventions

5 The answer is All Content demonstrates Content is well- No major grammatical

complete. information a deep understanding organized and easy or spelling errors. No
provided isof, and engagement to read. Points more than two minor
accurate. with, the text(s). follow a logical errors.
progression.

4 The answer is All Content demonstrates Content is well- No major grammatical

missing slight information understanding of, and organized and easy or spelling errors. No
details provided is engagement with, the to read. Points more than five minor
accurate. text(s), follow a logical errors.
progression.

3 The answer is Most Content demonstrates Content is Some major and minor

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 missing multiple information basic understanding of organized and easy errors that don’t
details. provided is the text(s). to read. Points necessarily impair
accurate. follow a mostly communication.
logical
progression.

2 Content suggests Some Content demonstrates Content may be Major and minor errors
lack of preparation information less than basic unorganized and significantly weaken
or comprehension. provided is understanding of the difficult to read. quality of
accurate. text(s). Points do not communication,
follow a solidly although still
logical comprehensible.
progression.

1 Content only A small Content demonstrates Content is Communication

marginally related toamount of the a lack of unorganized, seriously impaired by
the question/prompt. information is understanding of the illogical, and multitude of
accurate. text(s). difficult to read. spelling/grammatical
errors.

0 Content fails to None of the Content demonstrates Content is very Multitude of major and
meet the basic information a complete lack of poorly organized, minor errors make
requirements of the provided is understanding of the illogical, and answer
task. accurate. text(s). difficult to read. incomprehensible.

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 ASSESSMENT

Name: __________________________________________ Year & Section: _______________

Email Address / Contact No. _______________________ Date: ________________________
Instructor: ROBERTO V. MABULAC

Directions: This test contains multiple choice questions. Encircle the letter of the correct answer(s).

1. Avon, Amway, and Tupperware use which of the following forms of channel distribution?
a. direct marketing channel c. forward channel
b. indirect marketing channel d. fashion channel
2. From the economic system’s point of view, the role of marketing intermediaries is to transform:
a. raw products into finished products
b. consumer needs into producer needs.
c. consumer needs and wants into product desires.
d. assortments of products made by producers into the assortments wanted by consumers .
3. When the manufacturer establishes two or more channels catering to the same market, then …………… occurs.
a. Vertical channel conflict c. Multi channel conflict
b. Horizontal channel conflict d. None of the above
4. A distribution channel moves goods and services from producers to consumers. It overcomes the major time, place,
and ______________ gaps that separate goods and services from those who would use them.
a. Possession c. Image
b. Profit d. psychological
5. Through their contacts, experience, specialization, and scale of operation, ______________ usually offer the firm more
than it can achieve on its own.
a. Manufacturers c. direct marketers
b. Producers d. intermediaries
6. Makers of televisions, cameras, tires, furniture, and major appliances normally use which of the following distribution
channel forms?
a. direct marketing channel c. horizontal channel
b. indirect marketing channel d. synthetic channel
7. Using manufacturer’s representatives or sales branches is usually a characteristic of which of the following channel
forms?
a. business marketing channels c. service marketing channels
b. customer marketing channels d. direct marketing channels
8. Transporting and storing goods is part of which of the following marketing channel functions?
a. Negotiation c. contact
b. physical distribution d. matching
9. Who sells to the customers?
a. Semi wholesalers c. Retailer
b. Wholesalers d. Distributor
10. The benefits of marketing channels are.
a. Cost saving c. Financial support given
b. Time saving d. All of above
11. _______________ is a layer of intermediaries that performs some work in bringing the product and its ownership
closer to the buyer.
a. A direct marketing channel
b. An indirect marketing channel
c. A channel level
d. channel switching system

12. Which of the following statements about sales force management is true?
a. The sales force is the firm's most direct link to the customer

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 b. The statement, "The world will beat a path to your door if you build a better mousetrap," reflects how
business operates today
c. As organizations implement the marketing concept, they soon realize how important it is to be sales-oriented
d. Personal selling is usually less expensive than advertising e. Sales management is no different from any
other kind of management
13. With respect to a channel of distribution, the number of intermediary levels within the channel indicates the
____________ of a channel.
a. Width c. Length
b. Depth d. similarity
14. Independent firms at different channel levels integrate their programs on a contractual basis to achieve systemic
economies and increased market impact are known as.
a. Corporate vertical marketing systems c. Administered vertical
b. Contractual vertical marketing systems d. None of the above
15. Which of the following statements about the sales force in the 21st century is true?
a. Sales managers will use a hands-off approach and let the professional salesperson be his or her own boss
b. Transactional exchanges no longer occur
c. Sales management must be smart and nimble and provide technology-centered solutions to support the
sales effort
d. Salespeople make little use of the Internet because they realize the importance of the personal touch
e. All of the above statements about the sales force in the 21st century are true
16. ________________ is a marketing channel that has no intermediary levels.
a. direct marketing channel c. forward channel
b. indirect marketing channel d. hybrid channel
17. When channel members assume responsibility for one or more of the marketing flows over at least two separate levels
of distribution manufacturing and wholesaling, in fact, such systems are synonymous with both forward and backward
vertical integration is known as.
a. Corporate vertical marketing system c. Administered vertical marketing
b. Contractual vertical marketing systems systems
d. None of the above
18. The difference between transactional selling and relationship selling is
a. In transaction, selling buyers must pay cash
b. In relationship selling, buyers and sellers must be related
c. In transaction selling, sellers provide greater service
d. In relationship selling, sellers work to provide value to their customers
e. In transaction selling, the transaction is the beginning of a relationship
19. A ______________ is a set of interdependent organizations involved in the process of making a product or service
available for use of consumption by the consumer or business user.
a. Retailer c. distribution channel
b. Wholesaler d. middleman
20. The work of setting up objectives for selling activities, determining and scheduling the steps necessary to achieve
these objectives is known as.
a. Selling c. Sales programme
b. Sales policy d. Sales planning

REFLECTION

1. What important concepts have you gained in the lesson?

__________________________________________________________________________________________
______________________________________________________________________________

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 2. What are the difficulties have you encountered in the process of learning?

__________________________________________________________________________________________
______________________________________________________________________________

SOURCES

REFERENCES:

 Bert Rosenbloom.”DISTRIBUTION MANAGEMENT”. Cengage Lraning Asia Pte.Ltd. 2016

 Paul a. Myerson. “SUPPLY CHAIN AND LOGISTICS MANAGEMENT MADE EASY”
 SALES AND DISTRIBUTION MANAGEMENT

SUGGESTED READING:

Richant.R.Still, Edward.W .Gundiff and Norman.A.P.Govoni. “SALES MANAGEMENT”

Prentice Hall of India.

SALES MANAGEMENT: Analysis and Decision Making, Ingram, Cengage Learning.

SALES & DISTRIBUTION MANAGEMENT, Krishna K.Havaldar and Vasant. M. Cavall, TMH.

FUNDAMENTALS OF SALES MANAGEMENT, “Ramneek Kapoor”, Macmillan.

MANAGEMENT OF A SALES FORCE, “Spiro, Stanton and Rich”, TMH.

SALES MANAGEMENT: In the Indian Perspective, “Vaswar DasGupta”, PHI.

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