Distribution
Present by :
Jihad mkhalfi
Meryem kourisse
Plan
Definition of distribution
Distribution involves doing the following things
Distribution Channel
What Is The Difference Between A Direct And An
Indirect Distribution Channel
the Role of Channel of Distribution
Distribution can make or break a company. A good
distribution system quite simply means the company
has greater chance of selling its products more than its
competitors. The company that spreads its products
wider and faster into the market place at lower costs
than its competitors will make greater margins absorb
raw material price rise better and last longer in tough
market conditions. Distribution is critical for any type
of industry or service. The best price product,
promotion and people come to nothing if the product is
not available for sale at the points at which consumers
can buy.
Definition of distribution
Definition: Distribution means to spread the product
throughout the marketplace such that a large number
of people can buy it.
Distribution involves doing the following
things:
1. A good transport system to take the goods into
different geographical areas.
2. A good tracking system so that the right goods reach
at the right time in the right quantity.
3. A good packaging, which takes the wear and tear of
transport.
4. Tracking the places where the product can be placed
such that there is a maximum opportunity to buy it.
5. It also involves a system to take back goods from the
trade.
Distribution Channel
A distribution channel is the set of steps it takes for a
product to get in the hands of the key customer or
consumer. Distribution channels can be direct or indirect.
Distribution can also be physical or digital, depending on
the kind of business and industry.
What Is The Difference Between A Direct And
An Indirect Distribution Channel?
Direct Distribution
A direct distribution channel is organized and managed
by the manufacturer itself. Direct channels tend to be
more expensive to set up at the beginning and can
sometimes require significant capital investment.
Warehouses, logistics systems, trucks and delivery staff
will need to be set up. However, once those are in place,
the direct channel is likely to be shorter and less costly
than an indirect channel.
Indirect Distribution
Indirect Distribution
An indirect distribution channel relies on intermediaries
to perform most or all distribution functions, otherwise
known as wholesale distribution. The most challenging
part of indirect distribution channels is that another party
has to be entrusted with the manufacturer's products and
customer interaction. However, the most successful
logistics companies are experts at delivering receivables
in a way that most manufacturers cannot be
the Role of Channel of Distribution
A channel of distribution serves as the connecting link between the
producer and consumers. It creates time and place utilities by bridging
the gap between the time and place of production and those of
consumption.
Channels of distribution increase the efficiency of marketing because the
middlemen are specialized agencies of distribution. They help to reduce
the cost of transactions and smoothen the flow of goods and services.
Distribution agents facilitate search for buyers and sellers by keeping in
touch with both. They are in direct touch with consumers and understand
the needs and preferences of consumers. In the absence of middlemen
producers may be required to keep larger stock of goods.
Marketing intermediaries play a vital role in the distribution of goods and
services. These intermediates have wide contacts, expert knowledge and trade
experience.
Therefore, they can achieve more efficient distribution than producers. Many
producers do not have the financial resources and expertise required for direct
distribution. Manufactures generally produce a large quantity of a limited
variety of goods.
On the other hand, consumers generally desire only a limited quantity of a
wide variety of goods. Marketing intermediaries bridge the discrepancy
between the assortment of goods and services generated by the producer and
assortment demanded by the consumers.
They smoothen the flow of goods and services. The role of intermediaries has
become important due to increasingly wider markets and growing
complexities of distribution
Conclusion:
The intensive distribution strategy is for a company
to be present in as many points of sale as possible in
order to obtain large sales volumes. However, the risk
for the producer is to lose control over the distribution
of his products: he no longer controls the selling price
to the final consumer or the place and arrangement of
his product at the point of sale.
