Factors effecting selection of distribution channels
- 1. Presented BY: Rupinderjit Singh (3083) Sandeep Kaur (3087) Shubhanjali (3092) Presented To: Mr. Rajan Dhir (HOD Business Faculty) 117 September 2016
- 2. Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries. 2
- 3. A DISTRIBUTION CHANNEL in marketing refers to the path or route through which goods and services travel to get from the place of production or manufacture to the final users. Goods can be distributed using two main types of channels: •Direct Distribution Channels •Indirect Distribution Channels. 3
- 4. MARKET INTERMEDIARIES Middlemen Agent or Broker Wholesaler Retailer Distributer Value-added Resellers Merchants Facilitating Agents 4
- 5. 5 Factors affecting Selection of Distribution Channel •Nature of the Product: Physical Character a)Perishability b)Size and weight of the product c)Unit value of a product d)Standardization e)Technical Nature of product
- 6. 6 •Nature of the Market: In the words of Lazo and Corbin “Marketing managements select channels on the basis of customer wants-how, where and under what circumstances.” a) Consumer of Industrial Market b) Number of prospective Buyers c) Size of the Order d) Geographical Distribution e) Buying Habits of Customers
- 7. 7 a. Cost of Distribution of Goods b. Availability of desired Middlemen c. Unsuitable Marketing Policies for Middlemen d. Services provided by Middlemen e. Ensuring greater Volume of Sales f. Reputation and Financial Soundness •Nature of Middlemen:
- 8. 8 •Nature of Manufacturing Unit: a. Manufacturer Reputation and Financial Stability b. Ability and Experience of the Undertaking c. Desire for Control of Channel d. Industrial Conventions •Competition •Government Regulations and Policies: may impose certain restrictions on the wholesale trade of a particular product arid takeover the distribution of certain products.
- 9. 9 Conclusion: •Distribution Channel is vital in today’s market, not only it benefits the consumer by getting goods on to your table but also benefits the producers and intermediaries. •A distribution Channel can be as short as being direct from the vendor to the consumer or may include several Intermediaries. •In today’s world the distribution channel has become short due to the introduction of Online Marketing.
- 10. REFERENCE • http://www.webivore.com/press_release_distribution_service.htm • https://en.wikipedia.org/wiki/Distribution_(business) • http://study.com/academy/lesson/distribution-channels-in- marketing-definition-types-examples.html • http://www.slideshare.net/shomaa05/distribution-network- management • http://www.gcpindustrial.com/blog/middlemen • http://worldartsme.com/manufacturing-plant- clipart.html#gal_post_55604_manufacturing-plant-clipart-1.jpg • http://www.newstarservice.it/contatti/ 10
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