There are four basic elements of the marketing mix- product, pricing, place and promotion. All the four elements must be paid attention to for successful marketing and sale of products or services. Distribution relates to the place element. Let us look at its importance.
Distribution means the process by which we make the goods or the service available to the end consumer. Generally, the place of production is not the same as the place of consumption. So the goods have to be distributed to overcome the barrier of place.
Now the distribution of the products can be done by the organisation itself which is direct distribution. Or it can hire intermediaries and form distributions channel i.e. indirect distributions. The plan will depend on several factors, some of which are
These are the middlemen that ensure smooth and effective distribution of goods over your chosen geographical market. Middlemen are a very important factor in the distribution process. let us take a look at the types of middlemen we usually find.
Agents are middlemen who represent the produces to the customer. Theyare merely an extension of the company but the company is generally bound by the actions of its agents. One thing to keep in mind, the ownership of the goods do not pass to the agent. They only work on fees and commissions.
Wholesalers buy the goods from the producers directly. One important characteristic of wholesalers is that they buy in bulk at a lower rate than retail price. They store and warehouse huge quantities of the products and sell them to other intermediaries in smaller quantities for a profit.
Wholesalers generally do not sell to the end consumer directly. They sell to other middlemen like retailers or distributors.
Distributors are similar to wholesalers in their function. Except they have a contract to carry goods from only one producer or company. They do not stock a variety of products from various brands. They are under contract to deal in particular products of only one parent company
Retailers are basically shop owners. Whether it is your local grocery store or the mall in your area they are all retailers. The only difference is in their sizes. Retailers will procure the goods from wholesaler or distributors and sell it to the final consumers. They will sell these products at a profit margin to their customers.
In the reality of the market, all producers rely on the distribution to channel to some extent. Even those who sell directly may rely on at least one of the above intermediary for any purpose. Hence the distribution channel is of paramount importance in our economy.
Ans: A company’s ability to sell its products depends heavily on its method of distribution. Some advantages of indirect distribution i.e. using a distribution channel are as follows:
Distribution channels include wholesalers, retailers, distributors, and the Internet. In a direct distribution channel, the manufacturer sells directly to the consumer. Indirect channels involve multiple intermediaries before the product ends up in the hands of the consumer.
The three main distribution strategies, from broadest to narrowest, include intensive distribution in which any retailer may sell a product; selective distribution in which only retailers of a certain industry or quality can sell products; and exclusive distribution in which only one retailer in a specific geographic ...
There are three types of distribution channels: direct, indirect and hybrid. Direct. With the direct channel, the company sells directly to the customer.
These intermediaries, such as middlemen (wholesalers, retailers, agents, and brokers), distributors, or financial intermediaries, typically enter into longer-term commitments with the producer and make up what is known as the marketing channel, or the channel of distribution.
Distribution channels include wholesalers, retailers, distributors, and the Internet. In a direct distribution channel, the manufacturer sells directly to the consumer. Indirect channels involve multiple intermediaries before the product ends up in the hands of the consumer.
A retailer is one of the most popular and effective distribution channels. Retailers include supermarkets, department stores, specialty stores and big-box retailers. Today marketers working with retailers can put their products in physical stores, online stores or both.
What are the types of Intermediaries? There are four main types of intermediaries including agents and brokers, wholesalers, distributors, and retailers.
Flat or Uniform distribution is a type of data distribution where the data is evenly distributed throughout the entire range. This type of distribution is often used when analysing things like wait times or manufacturing processes. A bimodal distribution is when data has two peaks or more.
Three-channel systems are the most complex. Producers sell to an agent, who then sells to a wholesaler, followed by the retailer, and then the customer. Agents can come in handy when selling products to a specific area or when you work with multiple wholesalers.
Choosing a distribution channel means evaluating costs and profit margins, especially when intermediaries and third parties are involved. You should ensure that distribution is viable and can be carried out according to the terms agreed, with the possibility of scaling according to demand.
In a marketing channel, finished goods are moved from the producer, through intermediaries, to the buyers. There are many intermediaries involved in marketing channels such as the middleman, agent, broker, wholesaler, retailer, distributor, and dealer.
They perform the activities that make a supply chain work and provide a reason for it to exist. These participants are: 1) producers; 2) distributors or wholesalers; 3) retailers; and 4) customers or consumers.
Place (distribution) Place relates to the type of distribution channels or stores that will be used to distribute the product. The 4 P's work together to influence customer demand.
Introduction: My name is Aron Pacocha, I am a happy, tasty, innocent, proud, talented, courageous, magnificent person who loves writing and wants to share my knowledge and understanding with you.
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