About Distribution

[sunandaC]

Distribution' is one of the four aspects of marketing. A distribution business is the middleman between the manufacturer and retailer or (usually) in commercial or industrial the business customer. After a product is manufactured by a supplier/factory, it is typically stored in a distribution company's warehouse. The product is then sold to retailers or customers

Distribution Channels:"All the organisations through which a product must pass between its point of production and consumption"

Frequently there may be a chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or, rather more exotically, as the 'channel'. Each of the elements in these chains will have their own specific needs; which the producer must take into account, along with those of the all-important end-user

Functions of a Distribution Channel

The main function of a distribution channel is to provide a link between production and consumption. Organisations that form any particular distribution channel perform many key functions:

1.Information: Gathering and distributing market research and intelligence - important for marketing planning

2.Promotioneveloping and spreading communications about offers

3.Contact: Finding and communicating with prospective buyers

4.Matching: Adjusting the offer to fit a buyer's needs, including grading, assembling and
packaging

5.Negotiation: Reaching agreement on price and other terms of the offer

6.Physical distribution: Transporting and storing goods


7.Financing: Acquiring and using funds to cover the costs of the distribution channel
8.Risk taking: Assuming some commercial risks by operating the channel (e.g. holding stock)

 

[bhautik.kawa]

Distribution' is one of the four aspects of marketing. A distribution business is the middleman between the manufacturer and retailer or (usually) in commercial or industrial the business customer. After a product is manufactured by a supplier/factory, it is typically stored in a distribution company's warehouse. The product is then sold to retailers or customers

Distribution Channels:"All the organisations through which a product must pass between its point of production and consumption"

Frequently there may be a chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or, rather more exotically, as the 'channel'. Each of the elements in these chains will have their own specific needs; which the producer must take into account, along with those of the all-important end-user

Functions of a Distribution Channel

The main function of a distribution channel is to provide a link between production and consumption. Organisations that form any particular distribution channel perform many key functions:

1.Information: Gathering and distributing market research and intelligence - important for marketing planning

2.Promotioneveloping and spreading communications about offers

3.Contact: Finding and communicating with prospective buyers

4.Matching: Adjusting the offer to fit a buyer's needs, including grading, assembling and
packaging

5.Negotiation: Reaching agreement on price and other terms of the offer

6.Physical distribution: Transporting and storing goods


7.Financing: Acquiring and using funds to cover the costs of the distribution channel
8.Risk taking: Assuming some commercial risks by operating the channel (e.g. holding stock)

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