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Understanding Distribution Management

Distribution management oversees the movement of goods from suppliers to points of sale, including packaging, inventory, warehousing, supply chain and logistics activities. It plans and organizes the process of making raw materials available from suppliers to manufacturers and final products from manufacturers to consumers. Industrial marketing, also known as business-to-business marketing, specializes in providing goods and services to other businesses rather than individual customers. It involves determining commercial, government, and institutional needs and requirements and developing appropriate products, services, prices, distribution channels, and communications to satisfy those requirements. Derived demand refers to demand for a good or service that results from changes in demand for another related good or service, such as demand for raw

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Mehedul Islam Sabuj
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26 views4 pages

Understanding Distribution Management

Distribution management oversees the movement of goods from suppliers to points of sale, including packaging, inventory, warehousing, supply chain and logistics activities. It plans and organizes the process of making raw materials available from suppliers to manufacturers and final products from manufacturers to consumers. Industrial marketing, also known as business-to-business marketing, specializes in providing goods and services to other businesses rather than individual customers. It involves determining commercial, government, and institutional needs and requirements and developing appropriate products, services, prices, distribution channels, and communications to satisfy those requirements. Derived demand refers to demand for a good or service that results from changes in demand for another related good or service, such as demand for raw

Uploaded by

Mehedul Islam Sabuj
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Distribution Management

Overseeing the movement of goods from supplier or manufacturer to


point of sale. Distribution management is an overarching term that refers
to numerous activities and processes such as packaging, inventory,
warehousing, supply chain and logistics.
Distribution management is the process of planning, organizing, directing,
implementing and motivating so that it can make the available raw
materials from the supplier to the manufacturer and the final product from
manufacturer to the consumer.

What is Industrial Marketing?


Industrial marketing, also known as business-to-business (B2B) marketing,
is a branch of communications and sales that specializes in providing
goods and services to other businesses, rather than to individual
customers).
Because industrial marketing often involves large orders and long-term
relationships between the producer and client, the process from first pitch
to close of sale is often more complex than the process between a
business and a private customer.
Industrial Marketing is the process of
I.

Determining the needs and requirements of commercial enterprises,


governments and institutions and

II.

Developing the appropriate products, services, prices, distribution


channels and communications to satisfy those requirements.

High Involvement Product: Always the price of the product will be high
and consumer cannot easily purchase the products. It needs to collect
many information. Such as motor, Car etc.

Low Involvement Product: Price of the products will be always low and
customer can easily buy these products. There is available information to
the customers about the products. Such as Rice, paddy etc.

Derived Demand
A term used in economic analysis that describes the demand placed on
one good or service as a result of changes in the price for some other
related good or service. It is a demand for some physical or intangible
thing where a market exists for both related goods and services in
question. The derived demand can have a significant impact on the
derived good's market price.
The indirect demand for something that has value based on other goods
that can be derived or made from it, such as raw materials or other inputs
to a process of production. Derived demand for a material is driven by
changes in demand for the end product whose creation or production
requires that material.
1. Demand for a basic good (wanted not for its own sake but for the goods
derived from it) such as textiles, that is due to its use in the production of
another good such as apparels.
2. Demand for an input to a production process, dependent on the output
of a final or finished product. These inputs include factors of production
(capital, labor, land), raw materials, or intermediate (semi-finished) goods.

Difference between Industrial Marketing and Consumer


Marketing
Subject
Market
Structure

Industrial Marketing

Consumer Marketing
Geographically

Geographically
concentrated
Relatively
Fewer Buyers
Oligopolistic Competition
(A

market

condition

in

Dispersed
Mass Markets, Many
Buyers
Monopolistic
Competition

which sellers are so few


that the actions of any
one

of

them

will

materially affect price and


have
Product

measurable

impact on competitors.)
Can
be
technically
complex
Customized

to

preference
Service,
delivery

user

Standardized
Service, delivery and
availability

and

availability very important


Purchased for other than

only

somewhat important
Purchased
for
personal use

personal use
price

Competitive Bidding for unique List prices

items
promotion Emphasis on personal selling

Emphasis on advertising

Distributi

Shorter more direct channel to Many intermediaries

on
Customer

market
long term relationship

Relation
Consumer

short time
high involvement with many Low
involvement

Decision

members

Making
Process

Customer relation exist in a

individual

and

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