By:ALIYA SIDDIQ UA

BBM T I I YEAR56133710

What is distribution?

MobilitySpending acrossMaking activitiesSystem needs &demandsChannel way to reach the ends

Meaning of distribution of channel

It is the set of interdependent organization involved in the process of making or service available for use of consumption.

They are the set of pathways a product or service follow after production.

Importance of channel

Decision about the marketing channels are among the most critical management decision.

They just not serve markets, they make market.Channel chosen affects all other marketing

decision.Firm’s sale depends upon training and

motivation of dealers.

Channel levels

Types of intermediaries

1. Merchant middlemen wholesaler.

retailer.

2. Agents

brokers.

commission agents.

selling agents.

factors.

clearing agents.

Wholesalers

Functions of wholesalers:Assembling and buying.Warehousing.Transporting.Financing.Risk bearing.Grading packing and

packaging.Dispersing and selling.

Services of wholesalers

1. Services to manufacturer. economics of scale. saving time and trouble. better use capital.

1. Services to retailers. saving in cost and time. expert knowledge. better use of limited factors.

Retailers

Retailing includes all activity directly related to the sale of goods and services to the ultimate consumer for personal or non-personal.

Functions….Buying and assembling.Warehousing.Selling.advertising.

Services of retailer

To manufacturer and wholesaler:

1. Offer opportunity.

2. A big relief.

3. Provision of information.

4. Reduce the risk of loss.To the consumer.

1. Largest choice.

2. Extra services.

3. Supply of information.

Channel management decision

Selecting channel members.

Training channel members.

Motivating channel members.

Evaluating channel members.

Modifying channel arrangements.

Channel functions

Forward flow functions develop /disseminate communication. store and move the physical products. Oversee transfer of ownership.Backward flow functions place order with manufacturer. Facilitate payment of bills.

Channel conflict

...when one channel members action prevent the channel member from achieving the goals.

Channel conflicts

Vertical conflict-diff levels-same levels.

Horizontal conflict- same level within channels, between members.

Multi-channel conflict- two or more channels selling to same market.