DISTRIBUTION MIX DISTRIBUTION CHANNEL PHYSICAL DISTRIBUTION
Distribution is the process ofmaking a product or serviceavailable for use or consumptionby a consumer or businessuser, using direct or indirectmeans with intermediaries.
Combination of fivemajor components of effective distribution of goods,namely (1) inventory, (2) warehousing, (3) communications, (4) packaging, and (5) transport.
(A distribution channel can be as short asa direct transaction from the vendor to theconsumer, or may include severalinterconnected intermediaries
• Manufacturer• Wholesaler• Retailer• Consumer
Also known as directmarketing channel Door-to-door, companyoutlets, catalogue, TV& internet Best deals Exclusive channelMANUFACTURERCONSUMER
One intermediary inthe form of RETAILER Used for productswhere value is high &volume is low Mostly exclusive AutomobilesMANUFACTURERCONSUMERRETAILER
Two intermediaries inthe form of RETAILER& WHOLESALER Each has a defined role Not exclusive DurablesMANUFACTURERCONSUMERRETAILERWHOLESALER
Three intermediaries High volume, low valueproducts High frequency ofpurchase Best Reach FMCGMANUFACTURERCONSUMERRETAILERWHOLESALERDISTRIBUTOR
The process ofplanning, implementing, and controllingthe efficient, effective flow and storageof goods, services, and related informationfrom point of origin to point of consumptionfor the purpose of conforming to customersrequirements.
It includes all those activities concerned withthe efficient movement of goods from theplace of production to the place ofconsumption It involves the handling of raw materialfabricates parts, supplies & finished goodsfrom producers to consumers viaintermediaries
Attain customer satisfaction Profit maximization Getting the right product, at the rightplace, at the right time, in right quantity, atthe right customer at the lower cost Proper co-ordination of distribution activities
5. To use powerful tool of competitive mktg. 6. To provide better service of lower prices 7. To increase profit margin
Supplier Manufacturer IntermediariesWholesalers, Retailers Agents – Selling, Manufacturing, C & F etc.
Planning the overall physical distributionsystem In bound transport Receiving – Raw material, orders In plant warehousing Inventory management
Order processing Packaging Dispatch of goods Field warehousing Customer service