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Table of Contents
DEFINE DISTRIBUTION 3
WHAT CHANNEL IS 4
CHANNEL MEMBERSHIP 5
DRAW A CHANNEL OF DISTRIBUTION 6
DISCUSS DISTRIBUTION STRATEGIES 7
SUMMARY …………………………………………………………….8
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Q#1: DEFINE DISTRIBUTION?

• In essence, distribution is the dispersal of goods from producers to consumers.
This dispersal can be construed either in organizational terms as the successive
transfer of ownership along a marketing channel composed of producers,
wholesalers, and retailers or in terms of physical movement of these goods from
factories through warehouses to shops.
(Physical Distribution Systems by Alan C.
McKinnon)

• Distribution (or place) is one of the four elements of marketing mix. An

organization or set of organizations (go-betweens) involved in the making of
product.
(en.wikipedia.org/wiki/Distribution_(business)

• Distribution Marketing is the process of capitalizing on a company's distribution

and logistical assets to increase revenues, and the optimization of those assets
to reduce operating costs while either maintaining or increasing customer
satisfaction.

( www.willowbend.com)

• A business that does not manufacture its own products but purchases and resells
these products. Such a business usually contains finished goods inventory.
( David Frederick Ross 6th edition)
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Q#2: What Channel is?

• Distribution (or place) is one of the four elements of marketing mix. An
organization or set of organizations (go-betweens) involved in the process of
making a product or service available for use or consumption by a consumer or
business user.

• The other three parts of the marketing mix are product, pricing, and promotion.

• Chain of intermediaries, each passing the product down the chain to the next
organization, before it finally reaches the consumer or end-user. This process is
known as the 'distribution chain' or the 'channel.' Each of the elements in these
chains will have their own specific needs, which the producer must take into
account, along with those of the all-important end-user.

Channel

• The network made up of the company, suppliers, distributors, and ultimately

customers who “partner” with each other to improve the performance of the entire
system.
• Different members of Channels :

1. Wholseller

2. Distributor

3. Retailer

4. Consumer

Distribution channel
• A number of alternate 'channels' of distribution may be available:

• Distribution channels may not be restricted to physical products alone. They may
be just as important for moving a service from producer to consumer in certain
sectors, since both direct and indirect channels may be used. Hotels, for
example, may sell their services (typically rooms) directly or through travel
agents, tour operators, airlines, tourist boards, centralized reservation systems,
etc.
• As said by Kotler and Armstrong (2001), members of the marketing or distribution
perform several functions such as providing information for the company,
promotes their goods and services, have contacts with buyers, matching buyers
needs, as well as negotiate prices so that goods can be transferred.

Channel membership
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• Intensive distribution - Where the majority of resellers stock the 'product' (with
convenience products, for example, and particularly the brand leaders in
consumer goods markets) price competition may be evident.

• Selective distribution - This is the normal pattern (in both consumer and
industrial markets) where 'suitable' resellers stock the product.

• Exclusive distribution - Only specially selected resellers or authorized dealers

(typically only one per geographical area) are allowed to sell the 'product'.

There are two types of marketing systems.

Conventional Distribution Channel:

According to Kotler and Armstrong (2001), a conventional distribution channel is a

channel consisting of one or more independent producers, wholesalers, and retailers,
each a separate business seeking to maximize its own profits even at the expense of
profits for the system as a whole.

Since channel members are separated and acts independently, none of them has much
control over the other members. For example, in a conventional distribution channel,
manufacturers, distributors and retailers act independently so the manufacturers as the
producer of the goods, cant decide anything for the other members, lets say, on what
price should the distributors and retailers sell, where should they sell, etc. the
manufacturers or the other members has no formal authority over each other. Moreover,
in a conventional distribution channel, many conflicts may occur since there is the
absence of a formal contract and also in most cases, their goals and aims differ.
Another weakness of a conventional distribution system is that each and every member
tries to reap a lot of profits in order to pursue their own corporate objectives. This may
cause drawbacks for the system as each independent firm shows little concern for
overall channel performance.

Vertical Marketing System:

According to Evangelista, et al (1984), an improvement over the conventional marketing

system, is the integrated marketing system which may be vertical or horizontal. "A
vertical marketing system is a network of two or more levels of channel members as in
the case of arrangement between manufacturers and wholesalers, wholesalers and
retailers or between a manufacturer and a number of wholesalers and retailers"
(Evangelista et al, 1984). So here, all the members act as a single unified system.
REFRENCES:

Kotler, P. and Armstrong, G. (2001), Principles of Marketing, Prentice Hall, USA.

Evangelista, F. U. et al (1984), Principles of Marketing Management, National Book
Store, Inc., Philippines

Q#3: DRAW A CHANNEL OF DISTRIBUTION FOR CONSUMER

PRODUCT, BUSINESS PRODUCT & SERVICES?
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Manufacturer Manufacturer Manufacturer Manufacturer

Agent Wholesaler Retailer Consumer

Wholesaler Retailer Consumer

Retailer Consumer

Consumer

Q#4: DISCUSS DISTRIBUTION STRATEGIES?

• strengths to be encouraged
Contact Info Trends to discuss how we can we help you better understand and improve
your distribution strategies.
For product-focused companies, establishing the most appropriate distribution
strategies is a major key to success, defined as maximizing sales and profits.
Unfortunately, many of these companies often fail to establish or maintain the most
effective distribution strategies. Problems that we have identified include:
• Unwillingness to establish different distribution channels for different products
• Fear of utilizing multiple channels, especially including direct or semi-direct sales,
due to concerns about erosion of distributor loyalty or inter-channel
cannibalization
• Failure to periodically re-visit and update distribution strategies
• Lack of creativity and resistance to change
To be fair, there can be sound reasons for these perceived weaknesses. More typically,
however, they are due to failings such as simple inertia, lack of understanding of the
ultimate customers and their preferences, or a failure to acknowledge the importance of
a distribution strategy and invest sufficient resources in understanding it.
“Now” is absolutely NOT the time to blindly continue the status quo with your distribution
strategies. The Internet is creating sea-changes in terms of traditional manufacturer-
distributor relations. It has seen significant waves of disintermediation in multiple
product lines, and can facilitate cost-effective broadening of distribution channels.
Meanwhile, improvements in supply chain management technologies must also be
factored into choice of distribution partners.
Info Trends can help your company improve its distribution strategies by:
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• Mapping your products to the end-user

• Determining customers’ channel preferences and comparing these preferences
with actual availability
• Recommending new channels, and why
• Examining competitors’ strategies and comparing them and their effectiveness
with
your own
Confidential interviews with your distribution partners to identify areas for improvement,
as well as existing

SUMMARY:

In this topic we studied about the distribution, channel member and

channel of distribution for consumer product and business product and
services. As for as, I understand that distribution is the process of
delivering products or services to customer. Secondly, you studied about
the channel member .channel member are four that is distributor,
wholesaler, retailer and the final one is customer. Further, you can divided
channel membership that is Intensive distribution, Selective distribution
and Exclusive distribution

Finally, you can also see the table which shows how consumer product
distributed and business product. In consumer product you see that the
manufacturer sold their goods to distributor and distributor distribute in
deferent shop, market and also to wholesaler and retailer. Further, you see
the distribution of business product in which agent buy the product and give
to business user