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Distribution

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Parvathaneni Karishma
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12 views

Distribution

Uploaded by

Parvathaneni Karishma
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Marketing Mix: Place

Distribution
 Distribution in marketing is an element of the “place” category in the
four P's of marketing.

 Distribution is the process of making a product available for the


consumer or business user who needs it.

 Direct Distribution: Companies sell products and services directly to


customers through their own stores, websites or merchant
marketplaces.

 Indirect Distribution: Companies sell products and services to


customers through marketing channel.
Distribution
 marketing channel or channel of distribution is a set of
interdependent organizations that eases the transfer of ownership as
products move from producer to business user or consumer.

 A distributor works with the manufacturer to promote and sell its


products to other supply chain entities, either wholesalers or
retailers.

 Wholesalers: buy and sell goods in bulk. Wholesalers can be a link in


the marketing distribution chain, selling their products to retail
stores.

 Retailer: a channel intermediary that sells directly to consumers.


Distribution Channel for Consumer
Products
 In the zero-level channel, the manufacturer sells directly to the
consumer.

 In the one-level channel, the manufacturer sells the product to


retailer who in turn sells it to consumer.

 In the two-level channel, the manufacturer sells its product in bulk


to a wholesaler, who sells the products to retailers where consumers
can purchase them.

 In the three-level channel, the manufacturer works with a distributor


who distributes the products within a specified geographic area and
connects with wholesalers or retailers.
Distribution Channel for Business
and Industrial Products
Distribution Strategies
 Intensive distribution: involves selling products through a large
number of different channels. Product is made available in
abundance. (convenience product)

 Selective Distribution: Limited number of intermediaries are chosen


to distribute the product. (Shopping Products)

 Exclusive Distribution: The distribution of product is through a


single intermediary in a specific geographic area. (Specialty Products)

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