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“Distribution involves various activities which
the company undertakes to make the product
accessible and available to the target customer.”-
Philip Kotler
Objectives of Distribution
• Movement of goods
• Availability of goods
• Brings cost-effectiveness
• Protection of goods
• Makes transfer of ownership effective
• Strengthens promotion of products
• Enhance sales
P r o d u c
e r
C o n s u m
Agen
t
Wholes
aler
Retailer
Wholes
aler
RetailerRetailer
Agen
t
Retailer
P r o d u c
e r
U s e
Agen
t
Distribu
tor
Age
nt
Distribu
tor
1. Customers
a. Type of customer/market
b. Number of customer
c. Geographic concentration
d. Order size
2. Company considerations
a. Desire for control
b. Managerial ability and
experience
c. Financial resources
d. Services required
3. Product considerations
a. Nature of product
b. Unit value of product
c. Technical products
d. Order size and weight of the product
4. Middlemen considerations
a. Services provided by middlemen
b. Availability of desired middlemen
c. Sales volume possibilities
d. Attitude of middlemen towards
manufacturers policies
It refers to disagreement over certain matters or
issues between the channel members of
distribution system who possess different
characteristics. Conflict in channel system
generally arises between same level of channel.
# Sources of channel conflict
1. Goal differentiation
2. Unclear roles
3. Difference in perception
4. Ideological differences
5. Communication gap
Types of Channel conflict
• Horizontal conflict
• Vertical conflict
• Multi-channel or intertype channel conflict
1. Clearly define roles & goals
2. Channel restructuring
3. Expansion of financial resources
4. Affective communication system
5. Persuasion
6. Problem solving
7. Bargaining
Distribution

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Distribution

  • 1.
  • 2. “Distribution involves various activities which the company undertakes to make the product accessible and available to the target customer.”- Philip Kotler
  • 3. Objectives of Distribution • Movement of goods • Availability of goods • Brings cost-effectiveness • Protection of goods • Makes transfer of ownership effective • Strengthens promotion of products • Enhance sales
  • 4.
  • 5. P r o d u c e r C o n s u m Agen t Wholes aler Retailer Wholes aler RetailerRetailer Agen t Retailer
  • 6. P r o d u c e r U s e Agen t Distribu tor Age nt Distribu tor
  • 7. 1. Customers a. Type of customer/market b. Number of customer c. Geographic concentration d. Order size 2. Company considerations a. Desire for control b. Managerial ability and experience c. Financial resources d. Services required
  • 8. 3. Product considerations a. Nature of product b. Unit value of product c. Technical products d. Order size and weight of the product 4. Middlemen considerations a. Services provided by middlemen b. Availability of desired middlemen c. Sales volume possibilities d. Attitude of middlemen towards manufacturers policies
  • 9. It refers to disagreement over certain matters or issues between the channel members of distribution system who possess different characteristics. Conflict in channel system generally arises between same level of channel. # Sources of channel conflict 1. Goal differentiation 2. Unclear roles 3. Difference in perception 4. Ideological differences 5. Communication gap
  • 10. Types of Channel conflict • Horizontal conflict • Vertical conflict • Multi-channel or intertype channel conflict
  • 11. 1. Clearly define roles & goals 2. Channel restructuring 3. Expansion of financial resources 4. Affective communication system 5. Persuasion 6. Problem solving 7. Bargaining