distribution channel
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This document discusses different distribution channels that can be used to connect producers and consumers. It describes indirect channels that utilize middlemen like wholesalers and retailers. Direct channels involve the producer selling directly to consumers without middlemen. Mixed channels use both direct and indirect approaches. The document also outlines different types of wholesalers and retailers as well as factors that influence the selection of distribution channels.
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Distribution channels are an important element of marketing mix and are the routes through which products reach target customers. Indirect channels utilize middlemen like merchants and agents to distribute products from producers to consumers. Direct channels do not involve middlemen and producers sell directly to consumers. Companies may also use mixed channels that employ both direct and indirect methods simultaneously in different markets.
channels of distribution
This document discusses different types of distribution channels that can be used by manufacturers to transfer goods and services from producers to consumers. It defines distribution channels and provides examples of conventional and non-conventional channels. Conventional channels include direct channels involving no intermediaries, and indirect one-level, two-level, and multi-level channels involving various intermediaries like wholesalers and retailers. Non-conventional channels discussed are vertical channels integrated through ownership or contract, and horizontal channels involving strategic alliances between companies. The document concludes that manufacturers can select the most appropriate distribution channel depending on factors like product type and market conditions.
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Distribution channels are an important part of the supply chain that focuses on making products available to customers. Channel decisions can significantly impact what consumers pay, with distribution costs sometimes accounting for over 60% of the retail price. While more efficient channels like supermarkets have lower margins, distribution still makes up around 30% of the consumer price. Producers have various channel options to sell directly to consumers or through retailers, agents, wholesalers or a hybrid system. The objectives are to make the right products available to customers at the right time and place cost effectively while meeting service requirements.
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A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors and even the internet itself. Channels are broken into direct and indirect forms, with a "direct" channel allowing the consumer to buy the good from the manufacturer, and an "indirect" channel allowing the consumer to buy the good from a wholesaler or retailer.
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A distribution channel is the path by which all goods and services must travel to arrive at the intended consumer. Conversely, it is also used to describe the pathway that payments make from the end consumer to the original vendor. Distribution channels can be short or long, and depend on the amount of intermediaries required to deliver a product or service.
However, goods and services are sometimes passed to consumers through multiple channels, a combination of short and long. While increasing the number of ways in which a consumer can find a good can increase sales, it can also create a complex system that sometimes makes distribution management difficult. In addition, the longer the distribution channel, the less profit a manufacturer might get from a sale due to the fact each intermediary charges for its service.
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There are five important flows in a distribution channel:
1. Product flow refers to the physical movement of products from manufacturer to consumer.
2. Negotiation flow represents the buying and selling functions between channel members.
3. Ownership flow shows the transfer of title as the product moves through the channel.
4. Information flow is the exchange of information in two directions between all channel parties.
5. Promotion flow is the one-way persuasive communication in the form of advertising, selling, and publicity that flows through the channel.
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There are five important flows in a distribution channel:
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2. Negotiation flow represents the buying and selling functions between channel members.
3. Ownership flow shows the transfer of title as the product moves through the channel.
4. Information flow is the exchange of information in two directions between all channel parties.
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Physical Distribution Management Overview
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This document discusses distribution channels and retailers. It defines distribution channels as the route that goods take from producer to consumer, and may include direct channels from producer to consumer or indirect channels using middlemen like wholesalers or retailers. Distribution channels perform important functions like information sharing, contact, financing, matching products to customer needs, negotiation, physical distribution, promotion, and risk taking. The document also discusses types of distribution channels like indirect, direct, cooperative, and vertical marketing systems. It describes different types of retailers like general merchant stores, limited line stores, single line stores, department stores, supermarkets, chain stores, discount houses, and non-store retailers.
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This document discusses marketing channels and channel intermediaries. It defines a marketing channel as the set of interdependent organizations involved in making a product available to consumers. Channel intermediaries like retailers, wholesalers, and brokers are described. The document also discusses different channel structures for consumer and business products, including direct channels and channels with multiple levels involving wholesalers and retailers. Channel strategies like intensive, selective, and exclusive distribution are explained along with examples. The importance of marketing channels in providing scale, creating product utility, facilitating exchange, and performing other functions is highlighted.
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This document discusses distribution management and distribution channels. It defines distribution management as overseeing the movement of goods from suppliers to point of sale, including packaging, inventory, warehousing, supply chain and logistics. A distribution channel is the chain of businesses that a good passes through to reach the end consumer. Distribution channels can be short or long and depend on the number of intermediaries. The roles of distribution channels include enhancing efficiency, smoothing the flow of goods and services, reducing transaction costs, facilitating search, and providing proximity to consumers with less required stock from producers. The document also discusses types of distribution channels, market intermediaries, and functions of intermediaries.
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distribution channel
- 2. • Distribution channel is an important element of marketing mix. The ultimate objective firm is making product available to its target customer and executive of this objective is distribution.
- 3. • Important element of 4 ps of marketing mix. • It is a route • It include middle man. • It connect the link between consumer and producer • Distributor is target customer or users
- 6. Under the indirect channel of distribution the marketing company utilises the service of middle men to distribute its product to the consumer. • Merchant middlemen :- Merchant middlemen are those business organisations which take both –tittle of the goods and possession of goods .They bear the good remain with them. Its include wholesaler and retailer • Agent middlemen :- Agent middlemen get commission for their service and do not bear the risk .It include such as broker ,commercial agent, commission agent e.t.c.
- 7. (c) Mixed channel of Distribution The marketing company may use direct and indirect channel of distribution simultaneously. For some market the method of direct distribution may be used for remaining market the indirect channel may be used . At some place the firm may directly sell its product to customer and for other place the service of middlemen can be used. (d) Co-operative Distribution:- cooperative distribution is based on basic principles of cooperation . Under this type of distribution system in order to avoid unnecessary competition ,the firm dealing in the same product category . All the product being manufactured by the member firm are sold under common brand name .
- 8. (e) Vertical marketing system The vertical marketing system is becoming popular. It is tightly coordinated distribution channel designed specifically to improve operating efficiency and marketing effectiveness. Type of vertical marketing system
- 9. Various channel for the distribution of consumer good and industrial good Zero level One level Two level Third level (a) Consumer Marketing Channels
- 10. (b) Industrial marketing channel
- 12. TYPE OF WHOLESALER MERCHANT WHOLESALER FULL SERVICE WHOLESALERS LIMITED SERVICE WHOLESALER AGENT WHOLESALER BROKER COMMISION AGENT SELLING AGENT BUYING AGENT TYPE OF WHOLESLERS
- 13. Retailing assumes vital significance in the channel of distribution . Retailers sell the goods or service to ultimate consumer or users .
- 14. ON THE BASIS OF PRO DUCT LINE GENERAL MERCHANT STORE LIMITED LINE STORE SINGLE LINE STORE SINGLE PRODUCT STORE ON THE BASIS OF METHOD OPERATION DEPARTMENTAL STORE SUPER MARKET CHAIN STORE DISCOUNT HOUSES FRANCHISE STORE NON-STORE RETAILING MALLS CLASSIFICATION OF RETAILER……..
- 15. FACT0RS AFFECTING THE CHOICE OF DISTRIBUTION CHANNELS PRODUCTCONSIDERATION MARKETCONSIDERATION COMPANYCONSIDERATION MIDDLEMCONSIDERATIONEN 1.MARKET REPUATION AND GOODWILL 2.FINANCIAL RESOURCES 3.LOCATION 4.PRODUCT LINE SPECIALISATIO N 5.AVAILABLE FACILITY 6.COST FACTOR 1.UNIT PRICE OF THE PRODUCT 2.PERISHABILI- TY 3.NEWNESS OF THE PRODUCT 4.TECANICALLY OF THE PRODUCT 5.TYPE OF PRODUCT 1.NUMBER OF PRESENT AND POTENTIAL CUSTOMER 2.GEOGRAPH- IC CONCENTRATI ON OF CUSTOMER 3.ORDER SIZE 1.MARKET POILICY AND STRATEGY 2.DESIRE TO CONTROL THE CHANNEL 3.FINANCIAL RESOURCES 4.MANAGERI AL RESOURCE