THE ROLE OF DISTRIBUTION MANAGEMENT IN AP PLYING AN EFFECTIVE DISTRIBUTION POLICY

Authors
Citation
F. Dano, THE ROLE OF DISTRIBUTION MANAGEMENT IN AP PLYING AN EFFECTIVE DISTRIBUTION POLICY, Ekonomicky casopis, 44(7-8), 1996, pp. 595-608
Citations number
9
Categorie Soggetti
Economics
Journal title
ISSN journal
00133035
Volume
44
Issue
7-8
Year of publication
1996
Pages
595 - 608
Database
ISI
SICI code
0013-3035(1996)44:7-8<595:TRODMI>2.0.ZU;2-X
Abstract
Distribution management as a function, activity or process is closely related to basic problems of distribution and distribution systems and penetrates into the operational side of distribution, i. e. into logi stics, as well as into acquisition which may be taken for strategic si de of distribution. Theoretically the problems of distribution managem ent are closely linked to the tasks and functions of distribution: the ir basis may be found in considering a certain tension between product ion and consumption, these being represented by people engaged in them who are able to ease the tension. Distribution management seems to be one of the most important tasks of the enterprise management: it is p rimarily involved in resolving the problems of the organization, manag ement, planning and control of a distribution channel as a socioeconom ic system. The role and significance of a distribution management are given by the fact that a distribution system is one of the central pot entials of the firm's success, the decisions concerning distribution s ystems are of strategic character, the performances of a distribution system are designed far final consumers not only by the producers' per formances but-in case of an indirect distribution-by the services of d istribution intermediators or distribution helpers as well, between th e distribution and other decisions there are mutual cost and income co nnections. The distribution decisions must So hand-in-hand with other decisions of the sales policy of the firm and must not be seen separat ely. Six main tasks of distribution management may be distinguished: 1 . the understanding of the existing situation and the firm's developme nt and the development of its surroundings; 2 analysis and evaluation of the situation; 3. setting the distribution goals and strategies; 4. organization of an distribution system; 5. planning, coordination and control of distribution activities; 6. promotion and motivation of di stribution bodies. The theory of distribution channels may be categori zed according to two different orientations, namely according to econo mic evaluation of distribution channels and according to the behaviour of individual participants of distribution channels. Economic evaluat ion is mostly used in distribution design formation and is primarily o riented to the evaluation of distribution channels; microeconomic theo ry and analysis is applied and it is mainly oriented to the effect, an d concentrates upon cost, functional differences and arrangement of di stribution channels. At the same time many and different criterions an d methods are used. The behavioural evaluation is socio-economically o riented and comprises such phenomena as mutual relations between the p articipants of the distribution process which demonstrate themselves b y means of power in channel, by means of cooperation and according to conflicts which arise between them in realization of distribution acti vity. To affect them, the participants use some motivation means. The successful and effective fulfilment of the goals of a distributional s ystem inevitably requires an appropriate management organization of a distribution channel. Basic organizational concepts of a distribution channel are known to be a concept of the distribution channel manager, the concept of the product manager, the concept of the customers' man ager. The tasks discussed in the presented paper form just a part of a ll the distribution management problems. The problems that were not me ntioned here more in detail deserve a special attention and full elabo ration.