PLACEMENT / DISTRIBUTION
Distribution / Placement
It is the system of moving Goods &
It can also be termed as placement of goods
and services from producers to the
Distribution / Placement
Distribution Channels: These are the systems of
moving goods and services from producers to consumers.
These can also be termed as ‘Marketing Channels’.
Distribution Mix: A combination of channels used by
producers to get their products to a consumer.
Distribution Strategy: It as an overall plan for moving
products to intermediaries and final consumers.
These are business people and organizations that move
goods and services from producers to end consumers.
These intermediaries create three kinds of utility for the
producer as well as for the consumer.
These utilities being:
Types of Intermediaries
Basically there are three types of Intermediaries.
Distributors: They distribute the product in their allotted
Wholesaler: These are firms or people who buy from the
companies in bulk to sell to other companies or
Retailer: These are firms or individuals who directly sell
to public or as we call consumers.
What do these Marketing Intermediaries do?
Provide sales force
Provide market information
Provide promotional support
Sorting, standardizing & dividing
Delivering the product
Alternative Channels of Distribution
Consumer goods, Organizational goods and services each
has its own characteristics and types of distribution
Consumer goods require the most number of
services on the other hand require just one, or few or
Channels for Consumer Goods
Producer to Consumer
Producer to Retailer to Consumer
Producer to Wholesaler to Retailer to Consumer.
Channels for Organizational Goods
The best approach in such goods is the direct distribution
from producer to consumer. B2B
Channels for Services
More services are distributed directly by the producer to
the user because direct contact between both is required.
Some service businesses require an intermediary as a
broker or agent to distribute services.
While Selecting a channel we must consider the
Intensive Distribution: A distribution style in which the
product is placed in as many as outlets as possible.
Selective Distribution: A distribution style in which only
a limited number of outlets are used to place the product.
Exclusive Distribution: A distribution style in which
intermediaries are given the exclusive right to sell a
product within a market.
The transportation cost is the highest cost in the
distribution process and is almost 60% of the total
Transportation is the most vital link in the supply
A company must have a reliable transport system.