This document discusses distribution channels and retailers. It defines distribution channels as the route that goods take from producer to consumer, and may include direct channels from producer to consumer or indirect channels using middlemen like wholesalers or retailers. Distribution channels perform important functions like information sharing, contact, financing, matching products to customer needs, negotiation, physical distribution, promotion, and risk taking. The document also discusses types of distribution channels like indirect, direct, cooperative, and vertical marketing systems. It describes different types of retailers like general merchant stores, limited line stores, single line stores, department stores, supermarkets, chain stores, discount houses, and non-store retailers.
3. MEANING AND DEFINITION
Distribution channel is an important element of
marketing mix. The ultimate objective firm is
making product available to its target customer
and executive of this objective is distribution.
“A channel of distribution for a product is the
route taken by the little to the goods as they move
from the producer to the ultimate consumer or
industrial users”
5. Distribution channels are the system
economic institution through which a
producer of goods delivers them into the
hands of their user -Richard Buskirk
6. Information It involves collecting and sharing market research and intelligence
important for marketing planning and decisions.
Contact It involves finding and communicating with prospective buyers.
Financing Financing basically involves acquisition and allocation of funds to
cover the costs of the distribution channel in a cost effective
manner.
Matching Matching is to adjust the offer to suit a buyer’s needs, including
grading, assembling and packaging.
Negotiation Negotiation is to reach at an agreement on quality, price and other
terms of the offer.
Physical
Distribution
Physical distribution is to transport and store the goods in the
warehouses.
Promotion It is to develop and spread communications about offerings.
Risk Taken It is to assume some inherent commercial risks by operating the
channel.
Distribution Channel Functions
8. • Important element of
4 P's of marketing
mix.
• It is a route
• It include middle man.
• It connect the link
between consumer
and producer
• Distributor is target
customer or users
9.
10. Under the indirect channel of distribution the
marketing company utilises the service of middle
men to distribute its product to the consumer.
(a)Merchant middlemen :- Merchant middlemen are
those business organisations which take both–tittle of
the goods and possession of goods. They bear the
good remain with them. Its include wholesaler and
retailer
(b)Agent middlemen :- Agent middlemen get
commission for their service and do not bear the risk .It
include such as broker, commercial agent, commission
agent,etc….
11. (c) Mixed channel of Distribution
The marketing company may use direct and indirect
channel of distribution simultaneously. For some market
the method of direct distribution may be used for
remaining market the indirect channel may be used . At
some place the firm may directly sell its product to
customer and for other place the service of middlemen can
be used.
(d) Co-operative Channel of Distribution
cooperative distribution is based on basic principles
of cooperation. Under this type of distribution system in
order to avoid unnecessary competition,the firm dealing in
the same product category. All the product being
manufactured by the member firm are sold under common
brand name .
12. (e) Vertical marketing system
The vertical marketing system is
becoming popular. It is tightly coordinated distribution
channel designed specifically to improve operating
efficiency and marketing effectiveness.
Type of vertical marketing system
14. ON THE BASIS
OF PRODUCT
LINE
.GENERAL MERCHANT
STORE
.LIMITED LINE STORE
.SINGLE LINE STORE
.SINGLE PRODUCT
STORE
ON THE BASIS
OF METHOD
OPERATION
.DEPARTMENTAL STORE
.SUPER MARKET
.CHAIN STORE
.DISCOUNT HOUSES
.FRANCHISE STORE
.NON-STORE
.RETAILING MALLS
CLASSIFICATION OF RETAILER
