DISTRIBUTION MIX

AND
MANAGING CHANNELS

DISTRIBUTION MIXDistribution mix

refers to the combination of all decisions relating to make
products available to consumers. To make the product reach
the consumers, the decision regarding following are included
in Distribution(place) Mix
1. CHANNELS OF DISTRIBUTION.
2. PHYSICAL DISTRIBUTION.

CHANNEL OF
DISTRIBUTION
T he path a product takes from its
producer or manufacturer to the final user.

Industrial user-final user when a product

purchased for business use

Consumer-final user when a product purchased

for personal use

TYPES OF
DISTRIBUTION
CHANNELS

The way a product reaches the c

Two categories of distribution channel:1. DIRECT

2. INDIRECT

DIRECT
DISTRIBUTION
PRODUCER sells products directly to the consumers.
ADVANTAGE: less complicated
less expensive
Eliminates cost of Middle man
Allows for market research
DISADVANTAGE: producers may not be a good marketers
direct sales take time away from production

DIRECT
DISTRIBUTION
(SALES) EXAMPLE
1. PERSON TO PERSON
2. DISPLAY BOOTHS AT EVENTS
3. IN HOME DEMOS etc.

INDIRECT
DISTRIBUTION
PRODUCERS sells products through the
mediators(middle man) between producers and
consumers.
ADVANTAGES: Middlemen are sales professionals
Usefull when location of home base is too far
consumers
Greater sales volume pottential
Frees producer to focus on production
Disadvantage: more expensive than direct distribution

INDIRECT
DISTRIBUTION
EXAMPLES
1. SALES REPRESENTATIVES
2. WHOLESALE TO RETAILERS
3. WHOLESELLERS, DISTRIBUTORS etc.

LEVELS OF
DISTRIBUTION
CHANNEL
THIRD level

ZERO level

Manufacturer

FIRST level

Manufacturer

FOURTH level

Manufacturer

Manufacturer
Agent

Consumer

Wholesaler

Wholesaler

Retailer

Retailer

Retailer

Consumer

Consumer

Consumer