DISTRIBUTION
CHANNELS &
DISTRIBUTION
STRATEGIES
By
Aditya Kapoor
(13031)
Ankur Gupta(13032)
Ashish
Barapatre(13034)
Bhavik Kothari
(13035)
Jeevan Kumar sah
WHAT IS DISTRIBUTION ?
 Distribution is the process of making a product or service
available for use or consumption by a consumer or business
user, using direct means, or using indirect means with
intermediaries.
WHAT IS DISTRIBUTION
CHANNEL?
• A distribution channel is the chain of individuals and organizations
involved in getting a product or service from the producer to the
consumer. Distribution channels are also known as marketing
channels or marketing distribution channels.
CHANNELS OF
DISTRIBUTION
MANUFACTURER/PRODUCER
Entity that makes a good through a process involving raw materials, components,
or assemblies, usually on a large-scale with different operations divided among
differentworkers.
DISTRIBUTOR
 Distributors frequently have a business relationship with manufactures
that they represent.
 Many distributors maintain exclusive buying agreements that limit the
number of participants or enables distributors to cover a certain territory.
 The distributor becomes the manufacture’s direct point of contact for
prospective buyers of certain products. However, distributors rarely sell a
manufacture’s goods directly to consumers.
 Wholesale representatives and retailers generally find distributors to buy
products for resale.
WHOLE SELLER
A wholesaler is an intermediary entity in the distribution
channel that buys in bulk and sells to resellers rather than to
consumers.
 A distributor performs a similar role but often provides more
complex services.
Distributors and wholesalers often work together as channel
partners.
RETAILERS
 A Retailer purchases goods or products in large quantities from manufacturers
directly or through a wholesale, and
Retailers consist of small and large for-profit businesses that sell products
directly to consumers. To realize a profit, retailers search for products that
coincide with their business objectives and find suppliers with the most
competitive pricing.
Generally, a retailer can buy small quantities of an item from a distributor or a
wholesaler.
For instance, a retail merchant who wanted to purchase a dozen lamps could
PUSH AND PULL
STRATEGY
PUSH STRATEGY
A push promotional strategy involves taking the product directly to the
customer via whatever means, ensuring the customer is aware of your brand
at the point of purchase.
"Taking the product to the customer"
EXAMPLES OF PUSH TACTICS
Trade show promotions to encourage retailer demand
Direct selling to customers in showrooms or face to face
Negotiation with retailers to stock your product
Efficient supply chain allowing retailers an efficient supply
Packaging design to encourage purchase
Point of sale displays
An example of this is a network television commercial. TV viewers do not
request to see a car advertisement; it is simply "pushed" at them.
PULL STRATEGY
A pull strategy involves motivating customers to seek out your brand in an
active process.
"Getting the customer to come to you"
EXAMPLES OF PULL TACTICS
Advertising and mass media promotion
Word of mouth referrals
Customer relationship management
Sales promotions and discounts
An example of this would be a web search using a search engine. The
consumer performs a search for a specific car and information is pulled up
in response.
DISTRIBUTION
STRATEGIES
WHAT IS DISTRIBUTION
STRATEGY ?
A plan created by the management of a manufacturing business that
specifies how the firm intends to transfer its
products to intermediaries, retailers and end consumers.
 Larger companies involved in making products will usually also put
together a detailed production distribution strategy to guide its entry into its
target market.
INTENSIVE
An intensive distribution strategy is a plan that places products in
many different locations for distribution. Products that are used every
day and replaced often may be found in dozens of different retail
outlets in any given area. The purpose of this type of strategy is to
put so much of a product in so many locations that a customer will
come across the product frequently, making it easy for them to
remember and buy the product
This type of strategy occurs most often in situations in which
competition is high.
SELECTIVE
Selective distribution is a retail strategy that involves making a product or group of
products available only in certain markets.
This is the opposite of Intensive distribution, where a product line is distributed to
as many markets as possible.
The best examples would be of Whirlpool and General Electric who sell their major
appliances through dealer networks and selected large retailers. They develop a
good working relationship with these selected channel partners and expect a better-
than-average selling effort.
The advantages of selective distribution are good market coverage, increased
control and reduced costs as compared to intensive distribution.
EXCLUSIVE
Exclusive distribution is a situation in which only certain dealers are
authorized to sell a specific product within a particular territory.
This type of distribution agreement is usually seen with high end and luxury
products.
Exclusive distribution is often mentioned in product advertising. When an ad
says something like “only available at the following stores” or provides a list of
stores where a product can be purchased, it may indicate that the manufacturer
has an exclusive agreement, and the product cannot be obtained elsewhere.
REFERENCES
www.businessdictionary.com
www.google.co.in
https://smallbusiness.yahoo.com/advisor/answers/advertising-and-
marketing-1006052501387 .html
Retail mitsot

Retail mitsot

  • 1.
    DISTRIBUTION CHANNELS & DISTRIBUTION STRATEGIES By Aditya Kapoor (13031) AnkurGupta(13032) Ashish Barapatre(13034) Bhavik Kothari (13035) Jeevan Kumar sah
  • 2.
    WHAT IS DISTRIBUTION?  Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries.
  • 3.
    WHAT IS DISTRIBUTION CHANNEL? •A distribution channel is the chain of individuals and organizations involved in getting a product or service from the producer to the consumer. Distribution channels are also known as marketing channels or marketing distribution channels.
  • 4.
  • 5.
    MANUFACTURER/PRODUCER Entity that makesa good through a process involving raw materials, components, or assemblies, usually on a large-scale with different operations divided among differentworkers.
  • 6.
    DISTRIBUTOR  Distributors frequentlyhave a business relationship with manufactures that they represent.  Many distributors maintain exclusive buying agreements that limit the number of participants or enables distributors to cover a certain territory.  The distributor becomes the manufacture’s direct point of contact for prospective buyers of certain products. However, distributors rarely sell a manufacture’s goods directly to consumers.  Wholesale representatives and retailers generally find distributors to buy products for resale.
  • 7.
    WHOLE SELLER A wholesaleris an intermediary entity in the distribution channel that buys in bulk and sells to resellers rather than to consumers.  A distributor performs a similar role but often provides more complex services. Distributors and wholesalers often work together as channel partners.
  • 8.
    RETAILERS  A Retailerpurchases goods or products in large quantities from manufacturers directly or through a wholesale, and Retailers consist of small and large for-profit businesses that sell products directly to consumers. To realize a profit, retailers search for products that coincide with their business objectives and find suppliers with the most competitive pricing. Generally, a retailer can buy small quantities of an item from a distributor or a wholesaler. For instance, a retail merchant who wanted to purchase a dozen lamps could
  • 9.
  • 10.
    PUSH STRATEGY A pushpromotional strategy involves taking the product directly to the customer via whatever means, ensuring the customer is aware of your brand at the point of purchase. "Taking the product to the customer" EXAMPLES OF PUSH TACTICS Trade show promotions to encourage retailer demand Direct selling to customers in showrooms or face to face Negotiation with retailers to stock your product Efficient supply chain allowing retailers an efficient supply Packaging design to encourage purchase Point of sale displays An example of this is a network television commercial. TV viewers do not request to see a car advertisement; it is simply "pushed" at them.
  • 11.
    PULL STRATEGY A pullstrategy involves motivating customers to seek out your brand in an active process. "Getting the customer to come to you" EXAMPLES OF PULL TACTICS Advertising and mass media promotion Word of mouth referrals Customer relationship management Sales promotions and discounts An example of this would be a web search using a search engine. The consumer performs a search for a specific car and information is pulled up in response.
  • 13.
  • 14.
    WHAT IS DISTRIBUTION STRATEGY? A plan created by the management of a manufacturing business that specifies how the firm intends to transfer its products to intermediaries, retailers and end consumers.  Larger companies involved in making products will usually also put together a detailed production distribution strategy to guide its entry into its target market.
  • 15.
    INTENSIVE An intensive distributionstrategy is a plan that places products in many different locations for distribution. Products that are used every day and replaced often may be found in dozens of different retail outlets in any given area. The purpose of this type of strategy is to put so much of a product in so many locations that a customer will come across the product frequently, making it easy for them to remember and buy the product This type of strategy occurs most often in situations in which competition is high.
  • 16.
    SELECTIVE Selective distribution isa retail strategy that involves making a product or group of products available only in certain markets. This is the opposite of Intensive distribution, where a product line is distributed to as many markets as possible. The best examples would be of Whirlpool and General Electric who sell their major appliances through dealer networks and selected large retailers. They develop a good working relationship with these selected channel partners and expect a better- than-average selling effort. The advantages of selective distribution are good market coverage, increased control and reduced costs as compared to intensive distribution.
  • 17.
    EXCLUSIVE Exclusive distribution isa situation in which only certain dealers are authorized to sell a specific product within a particular territory. This type of distribution agreement is usually seen with high end and luxury products. Exclusive distribution is often mentioned in product advertising. When an ad says something like “only available at the following stores” or provides a list of stores where a product can be purchased, it may indicate that the manufacturer has an exclusive agreement, and the product cannot be obtained elsewhere.
  • 18.