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Unit 4 of 4 · MBA Sem 2

Unit 4: Distribution and emerging trends

Marketing Management notes · PTU syllabus (MBA 203-21)

3 min read9 topics10 exam questions
On this page
  1. Unit summary
  2. Supply chain decisions
  3. Channel design and management
  4. Retailing and wholesaling
  5. Green marketing
  6. Event, network, social and buzz/viral marketing
  7. Customer relationship management (CRM)
  8. Global and rural marketing
  9. E-commerce and digital marketing
  10. Bottom-of-the-pyramid marketing
  11. Key terms
  12. Quick revision
  13. Important questions

Unit summary

Products must reach customers efficiently, and marketing keeps evolving with technology and society. This unit covers supply chain decisions, channel design and management, retailing and wholesaling, green, event, network, social and buzz marketing, CRM, global and rural marketing, e-commerce, digital marketing and bottom-of-pyramid marketing.

After this unit you can

  • Explain supply chain decisions and channel design and management
  • Explain retailing and wholesaling
  • Explain green, event, network, social and buzz marketing and CRM
  • Explain global, rural, digital and bottom-of-pyramid marketing

PTU syllabus topics

  • Supply chain decisions
  • channel design and management
  • retailing and wholesaling
  • green/event/network/social/buzz marketing
  • CRM
  • global and rural marketing
  • e-commerce
  • digital marketing
  • bottom-of-pyramid marketing
ComparisonChannel levels
Structure
Example

Zero-level

Manufacturer → consumer

D2C websites

One-level

Manufacturer → retailer → consumer

Large retail chains

Two-level

Manufacturer → wholesaler → retailer → consumer

FMCG goods

Three-level

Adds an agent or distributor

Rural FMCG distribution

1

Topic 1

Supply chain decisions

  • Supply chain: the network from raw materials to the final customer — upstream (suppliers) and downstream (distribution).
  • Decisions: order processing, warehousing (number and location), inventory, transportation mode (rail, road, air, water, pipeline), logistics information systems; integrated logistics management and third-party logistics.
2

Topic 2

Channel design and management

ProcessChannel design decisions
  1. 1Analyse customer needs
  2. 2Set channel objectives
  3. 3Identify alternatives

    Types, number and responsibilities of intermediaries

  4. 4Evaluate alternatives

    Economic, control, adaptability

  5. 5Select and manage channel members

Intensity of distribution: intensive (soft drinks — everywhere), selective (electronics — chosen dealers) and exclusive (luxury brands — one dealer per area). Channel management includes selecting, motivating, evaluating members and managing channel conflict.

ProcessChannel levels
  1. 1Zero-level

    Manufacturer to consumer (direct)

  2. 2One-level

    Manufacturer, retailer, consumer

  3. 3Two-level

    Manufacturer, wholesaler, retailer, consumer

  4. 4Three-level

    Manufacturer, agent, wholesaler, retailer, consumer

3

Topic 3

Retailing and wholesaling

Retailing is selling goods and services directly to final consumers. Formats: department stores, supermarkets, hypermarkets, convenience stores, speciality stores, discount stores, and non-store retailing (e-commerce, direct selling, vending). Physical distribution (logistics) moves goods from the producer to the customer: order processing, warehousing, inventory management and transportation. The goal is the right product, in the right place, at the right time, at the lowest cost.

  • Wholesaling: selling to retailers and business buyers; merchant wholesalers, brokers and agents, manufacturers' sales branches; functions — buying and assortment, bulk breaking, warehousing, transport, financing, risk bearing, market information.
4

Topic 4

Green marketing

Green marketing markets products based on their environmental benefits — eco-friendly products, sustainable packaging, reduced carbon footprint.

  • Strategies: eco-design, recyclable packaging, eco-labels (Ecomark), green supply chains, cause-related communication.
  • Challenges: higher costs, consumer scepticism, greenwashing (false environmental claims — CCPA guidelines on greenwashing, 2024).

Example

ITC's paper-based packaging and Tata Motors' EV range are marketed partly on environmental benefits.

5

Topic 5

Event, network, social and buzz/viral marketing

ApproachMeaningExample
Event marketingPromoting a brand through events, sponsorships and experiencesIPL sponsorships, product launches, college fests
Network marketing (MLM)Products sold through a network of independent distributors earning on own and downline salesAmway, Herbalife (Direct Selling Rules, 2021 ban pyramid schemes)
Social marketingApplying marketing to promote social good and behaviour changeSwachh Bharat, polio "Do Boond Zindagi Ki", anti-tobacco campaigns
Buzz marketingCreating word-of-mouth excitement through influencers and surprisesLaunch teasers, influencer seeding
Viral marketingContent designed to be shared rapidly onlineZomato's social media posts, memes, short videos

Exam tip

Distinguish social marketing (cause-driven) from social media marketing (channel-driven) — a common confusion.

6

Topic 6

Customer relationship management (CRM)

CRM is the overall process of building and maintaining profitable customer relationships by delivering superior value and satisfaction.

CycleCRM process
CRM process
1Acquire customers
2Collect and integrate customer data
3Analyse and segment customers
4Personalise offers and service
5Retain and grow
6Measure
  1. 1. Acquire customers:
  2. 2. Collect and integrate customer data: CRM software
  3. 3. Analyse and segment customers: By value and behaviour
  4. 4. Personalise offers and service:
  5. 5. Retain and grow: Loyalty programmes, cross-selling, up-selling
  6. 6. Measure: Retention rate, CLV, satisfaction
  • Types: operational (sales force and service automation), analytical (data mining), collaborative (sharing across channels).
  • Benefits: retention (cheaper than acquisition), higher CLV, word of mouth; tools: Salesforce, Zoho CRM, HubSpot.
7

Topic 7

Global and rural marketing

Global marketing

  • Entry modes: exporting (direct/indirect), licensing, franchising, contract manufacturing, joint ventures, wholly owned subsidiaries.
  • Standardisation vs adaptation of product, price, promotion (glocalisation — McDonald's McAloo Tikki).
  • Challenges: cultural differences, regulations, currency risk, logistics, competition.

Rural marketing

  • Features of rural markets: large population (about 65% of India), rising incomes, agriculture dependence, seasonal demand, low literacy, scattered villages, haats and melas.
  • 4As framework: Availability, Affordability (sachets), Acceptability, Awareness (wall paintings, vans, local language).

Example

HUL's Project Shakti uses rural women entrepreneurs to distribute products in villages; sachet pricing made shampoos affordable.

8

Topic 8

E-commerce and digital marketing

  • E-commerce models: B2C, B2B, C2C, D2C (direct-to-consumer brands like boAt, Mamaearth), quick commerce, ONDC.
ClassificationDigital marketing tools
Digital marketing

  • Search engine optimisation (SEO) and search ads

  • Social media marketing

    Instagram, YouTube, LinkedIn

  • Content marketing

    Blogs, videos, podcasts

  • Email and WhatsApp marketing

  • Influencer marketing

  • Affiliate marketing

  • Mobile and app marketing

  • Marketing analytics and AI personalisation

  • Metrics: reach, impressions, CTR, conversion rate, customer acquisition cost (CAC), return on ad spend (ROAS).
  • Concerns: data privacy (DPDP Act, 2023), dark patterns (CCPA guidelines 2023), ad fatigue.
9

Topic 9

Bottom-of-the-pyramid marketing

  • Concept (C.K. Prahalad, 2004): the billions of low-income consumers at the "bottom of the pyramid" form a large, profitable market if firms innovate for affordability and access.
FrameworkRequirements of BOP marketing

  • Affordability

    Small packs, low unit price

  • Access

    Reach remote areas through local partners

  • Availability

    Reliable supply in small outlets

  • Awareness

    Local language, demonstrations

  • Examples: sachet shampoos, Tata Swach water purifier, microfinance, prepaid mobile recharges of small value, Godrej ChotuKool refrigerator.
  • Criticism: may push non-essential spending; must avoid exploitation and focus on genuine value.

Key terms

Marketing channel
Set of intermediaries that make products available
Wholesaling
Selling goods to those buying for resale or business use
CRM
Managing detailed customer information and touchpoints
Buzz marketing
Generating word-of-mouth through opinion leaders
Bottom of the pyramid
Large low-income consumer market

Quick revision

  • Supply chain and logistics; channel levels, design and conflict.
  • Retail formats and wholesaling.
  • Green, event, network, social, buzz marketing; CRM.
  • Global entry modes; rural 4As.
  • E-commerce models, digital tools and metrics; BOP marketing (Prahalad).

Important exam questions

Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).

Short-answer questions

  1. Q1.What is a zero-level channel?
  2. Q2.Distinguish retailing and wholesaling.
  3. Q3.What is green marketing?
  4. Q4.Define CRM.
  5. Q5.What are the 4As of rural marketing?
  6. Q6.What is bottom-of-the-pyramid marketing?

Long-answer questions

  1. Q1.Explain the process of channel design and management.
  2. Q2.Discuss green, event, social and buzz marketing.
  3. Q3.Explain the features of rural markets and strategies to serve them.
  4. Q4.Discuss digital marketing tools and bottom-of-the-pyramid marketing.

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