The document discusses distribution channels and strategies. It defines distribution channels as the process of transferring products or services from producers to customers through intermediaries. It lists the basic types of distribution channels as direct marketing, one level indirect, two level indirect, and so on. It discusses distribution objectives like minimizing costs while meeting service needs and using the best channels for different target segments. The document also outlines strategies like exclusive, intensive, and selective distribution for controlling the scope of distribution through intermediaries.
2. Contant
y Definition
y Distribution cost
y Types of Distribution channel
y Basic Channels of Distribution
y Distribution Objectives
y Distribution-Scope Strategies
3. Definition
y Distribution channel is nothing but it is a process of
transfer the products or services from Producer to
Customer or end user.
y Marketing channels are sets of interdependent
organizations involved in the process of making a
product or service available for use or consumption
Philip Kotler
4. Elements Distribution cost
y Transportation cost
y Inventory cost
y Warehouse cost
y Material cost
y Packaging cost
5. Types of Distribution channel
y Direct Marketing channel( zero level)
y Indirect Marketing channel
1. One level channel
2. Two level channel
3. Three level channel
4. Four level channel
6. Basic Channels of Distribution
Manufacturers/products
Agents/brokers
Wholesalers/distributors
Retailers Retailers
Consumers and organizational end users
7. Typical Distribution of Drugs
Manufacturers
Marketing Agents
Retailers/Wholesalers/Distributors
Private GPs/specialists Group Procurement
Office Retail
Pharmacy
Public Hospitals / Institutions
8. Distribution Objectives
‡ Minimize total distribution costs for a given
service output
‡ Determine the target segments and the best
channels for each segment
‡ Objectives may vary with product
characteristics
± e.g. perishables, bulky products, non-standard
items, products requiring installation &
maintenance
9. Distribution-Scope Strategies
‡ Exclusive Distribution
± Limiting the distribution to only one
intermediary in the territory
‡ Intensive distribution
± Distribute from as many outlets as
possible to provide location
convenience
‡ Selective distribution
± Appoint several but not all retailers
