Distribution Policy

Distribution is an important element in Marketing.

Increase in costs of transportation - A steadily rising share of manufacturing and selling costs.

What systems are geared to achive - Quicknes of delivery

Definition and scope

• Involves
  • Product protection
  • Transport
  • Warehousing
  • Sale outlet channels
• Implies decisions on
  • Customer service levels
  • Salesforce requirements
  • Pricing policies
  • Order values
  • Order processing and invoicing
  • Stock control
  • etc

Key decisions

• Selection of sales outlet channels
• Means of delivery
• Customer service requirements
• Cost
• Costs must be monitored and controlled

Forward planning - Changing social trends must be catered for eg credit cards, internet, etc.