SABIN SOMAN S2 MBA IMT PUNNAPRA

Distribution of products constitutes an important element of marketing mix of a firm. After development of the product, the marketing manager has to decide channels or routes through which the product will flow from the factory to the potential customers . The company must decide whether the products has to be reached to the customers through direct sales or with the help of the intermediaries. The selection of the proper distribution channel is a vital part in the marketing of the product.

Distribution channels can be classified on the basis two different product such as.. Consumer goods  Industrial goods


The distribution channel of consumer goods are classified on the basis of the number of intermediaries involve in the channels of distribution . such as

ZERO LEVEL  ONE LEVEL  TWO LEVEL  THREE LEVEL



ZERO LEVEL

PRODUCER

CONSUMERS

ONE LEVEL PRODUCER RETAILER CONSUMERS

TWO LEVEL
PRODUCER WHOLESALER RETAILER CONSUMER

THREE LEVEL

PRODUCER

AGENT

WHOLESALER

RETAILER

CONSUMER

The selection of distribution channel for industrial goods are not complex while comparing with consumer goods because in marketing of industrial goods there is no intermediaries are involved They most focused on DIRECT SELLINGuu

Direct selling includes.



Sales force office or courier

Post

Tele-marketing Retail

outlets

Channel decisions refers to the managerial decision on the selection of the very suitable channel for the distribution of goods from the producers to the customers. While taking channel decision the firm must consider lots of factors
 Affect

the marketing-mix variables Part of price Long-term implications Degree of channel control

The selection of the distribution channel based on after considering several factors , if it is not properly valued the marketing may fails . Factors such as Market consideration  Product consideration  Company consideration  Middlemen consideration


Consumer or industrial market of potential customers of order habits of customers concentration of market

No.

Size

Buying

Geographical

Unit value line product

Product

Standardized Technical Bulk

nature

and weight

Perishability

Volume of production resources

Financial

Experience and competence management provided by the channels

Service

 Availability Financial Attitude cost

of desired middlemen

ability

of middlemen

Intensity of market refers to the number of middlemen should be incorporated in sales of the particular product by the company . Which involves.
  

Intensive distribution Selective distribution Exclusive distribution