Preview

Dist Channel

Powerful Essays
Open Document
Open Document
3957 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Dist Channel
CONTENTS

* Concept * Types of channel distribution * Channel Design * Functions * Cost Allocation

* Advantages & Disadvantages

* Case Study

* Conclusion

Bucklin Theory of Distribution Channel Structure 1966

“A channel of distribution comprises a set of institutions which perform all of the activities utilised to move a product and its title from production to consumption.” Our paper today focuses on the “appraisal of distribution channels, advertisement strategy.”

Meaning of Distribution Channel
We all know that a marketing mix consists of product, price, place and promotion. Distribution channels help in the ‘place’ aspect of the marketing mix. Distribution provides place, time and possession utility to the final consumer. In our paper, we shall see how marketing channel decisions play a strategic role in the organizations success.

Functions of Distribution Channel
Distribution channels are intermediaries (wholesaler, retailer) or middlemen who – * Exist because producers cannot reach all their customers * Multiply the reach of the product by matching the buyer and the seller * Provide efficiency to the marketing process * Facilitate smooth flow of products from producer to consumer * Create time, place or possession utilities * Have the core competency and reach * Have the contact, experience and specialization of the operation * Provide marketing information to the buyer * Provide management services and advice when required * Helps with the financing when required and * Provides risk bearing techniques and bulk-breaking facilities

Types of Distribution Channels
Manufacturers and consumers are two major components of the market. Intermediaries perform the duty of eliminating the distance between the two. Based on necessity of the product distribution, below are the consumer, business to business and multiple marketing channels.

Consumer Channels



Bibliography: 1. http://www.slideshare.net/AnuragGupta18/hul-distribution-model 2. http://www.slideshare.net/9981123735/sales-and-distribution-channel-of-hul 3. http://www.slideshare.net/rsraghav/sales-distribution-hindustan-unilever-presentation 4. Hindustan Unilever: Scaling a cost-efficient distribution and sales network in remote markets 5.

You May Also Find These Documents Helpful

  • Powerful Essays

    Marketing Channels

    • 1234 Words
    • 5 Pages

    This paper discusses the importance of choosing appropriate channel members and also identifies and discusses criteria that should be used by the car compact disc player manufacturer when evaluating potential intermediaries for the firm’s distribution channel. This is important for this firm since it’s only through these marketing channels that their product is going to reach the consumer. The customer in this case is the auto makers who are intended to buy the newly developed compact disc player to fix them in the automobiles. The method for marketing this product is therefore crucial. In our study it is specified that the manufacturer uses two distribution channels. In one case he distributes the CD player directly to the auto makers and in another case he distributes the product to electronic stores.…

    • 1234 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Channels of Distribution

    • 1224 Words
    • 6 Pages

    Once you have selected and developed a unique product or business idea, correctly positioned and targeted it to buyers, and developed your packaging and pricing, the selection of distribution channels and sales representation is key to successful marketing.…

    • 1224 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Emr Innovations

    • 2012 Words
    • 9 Pages

    There are three variables distribution channels ( direct and in direct ) according to their alternative strategy. Than recommended strategies.…

    • 2012 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Channel Distribution

    • 1985 Words
    • 8 Pages

    A channel of distribution or trade channel is the path or route along which goods…

    • 1985 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Mktg 1

    • 959 Words
    • 4 Pages

    * Can be viewed as a large canal or pipeline through which products, their ownership, communication, financing and payment, and accompanying risk flow to the consumer.…

    • 959 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    TOC \h \z \t "1,1,2,2,3,3" INTRODUCTION PAGEREF _Toc402186732 \h 4CHAPTER 1: THOERICAL FRAMEWORK PAGEREF _Toc402186733 \h 61.1 OVERVIEW OF DISTRIBUTION CHANNEL PAGEREF _Toc402186734 \h 61.1.1 Definition of distribution PAGEREF _Toc402186735 \h 61.1.2 Definition of distribution channel PAGEREF _Toc402186736 \h 71.1.3 Characteristics of distribution channels PAGEREF _Toc402186737 \h 81.1.4 The role of distribution in marketing: PAGEREF _Toc402186738 \h 101.1.5. Functions of distribution channels PAGEREF _Toc402186739 \h 111.2 CHANNELS OF DISTRIBUTION PAGEREF _Toc402186740 \h 111.2.1 Types of Channels of Distribution PAGEREF _Toc402186741 \h 111.2.2 Participants in distribution: PAGEREF _Toc402186742 \h 131.2.3. Structural features of channel PAGEREF _Toc402186743 \h 151.3 THE FRAMEWORK DESIGNING DISTRIBUTION CHANNEL PAGEREF _Toc402186744 \h 171.3.1 The content and characteristics of the distribution channel management: PAGEREF _Toc402186745 \h 171.3.2 Steps in designing distribution channel PAGEREF _Toc402186746 \h 181.4 FACTORS AFFECTING THE DISTRIBUTION CHANNEL PAGEREF _Toc402186747 \h 19CHAPTER 2: FINDINGS ON DISTRIBUTION CHANNELS OF THE DAIRY INDUSTRY PAGEREF _Toc402186748 \h 202.1 OVERVIEW OF VIETNAM’S DAIRY INDUSTRY PAGEREF _Toc402186749 \h 202.1.1. Dairy products in Vietnam PAGEREF _Toc402186750 \h 202.1.2. Findings on Distribution channel system of vietnamese dairy: PAGEREF _Toc402186751 \h 212.2 OVERVIEW OF VINAMILK DISTRIBUTION CHANNEL PAGEREF _Toc402186752 \h 232.3. FACTORS AFFECTING DISTIBUTION CHANNEL OF VINAMILK PAGEREF _Toc402186753 \h 242.3.1. Resource capacity and operational characteristics of the enterprise: PAGEREF _Toc402186754 \h 242.3.2. Characteristics of the product: PAGEREF _Toc402186755 \h 242.3.3. Characteristics of target customers: PAGEREF _Toc402186756 \h 252.3.4. Characteristics of commercial intermediaries: PAGEREF _Toc402186757 \h 252.3.5. Channel’s goals:…

    • 14377 Words
    • 47 Pages
    Satisfactory Essays
  • Satisfactory Essays

    • Distribution channels are intermediaries used by the producers to bring their products to the market. • Why? Because the use of intermediaries bring greater efficiency in making goods available to target markets. In other words, they match the supply with the demand. • Most important benefit of using intermediaries is that they provide economies. They reduce the amount of work that must be done by both producers and consumers.…

    • 2536 Words
    • 11 Pages
    Satisfactory Essays
  • Good Essays

    Distribution channels are all the sub-marketers or intermediate marketers of the company. For example: selling agents, wholesalers, retailers, authorized representatives, and showrooms etc; are basically distribution channels.…

    • 1282 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Distribution Channel

    • 846 Words
    • 4 Pages

    Channels of distribution carry out a number of functions in order for the flow of goods from the producer to consumer to be possible. Some of these channel functions includes;…

    • 846 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Distribution Management

    • 7507 Words
    • 31 Pages

    1. Channel strategy – broader, the entire process of setting up and operating the MC…

    • 7507 Words
    • 31 Pages
    Powerful Essays
  • Good Essays

    An organization must make a consious decision about which segments to serve and which segments to ignore…

    • 944 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Departmental Store

    • 2488 Words
    • 10 Pages

    | The third element in marketing mix is to find out appropriate ways through which goods are to be made available to the markets. It is a management function and a decision in the matter is required to be taken before the commercial production is undertaken. The entire function of getting goods into the hands of the consumer is often referred to as distribution. In its broadest sense this function includes transportation as well as the middlemen who handle the goods and help to transfer title to the goods. The term channel of distribution is used to denote the middlemen engaged in moving goods form place of production to the used to denote the be middlemen engaged in moving goods form place of production to the place of consumption. This is inaccurate and unwise. This is in fact is a 'channel' through which goods are made to move as smoothly as possible to the desired places. In other words, the route through which goods move form the place of production to the place of consumption is termed as 'channel of distribution'.…

    • 2488 Words
    • 10 Pages
    Good Essays
  • Powerful Essays

    Channels of Distribution

    • 2447 Words
    • 10 Pages

    Managing a distribution channel often begins with a producer; therefore we will discuss channels largely from a producer’s vantage point.…

    • 2447 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Physical Distribution

    • 1389 Words
    • 6 Pages

    Define as paths that goods and services and title to them follow from producer to consumer. Distribution channels are composed of marketing intermediaries, the persons or firms that operate between the producer and the consumer or industrial user. The two main categories of marketing intermediaries are wholesalers and retailers.…

    • 1389 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Distribution Channel

    • 298 Words
    • 2 Pages

    A channel of distribution can be defined as the collection of organizational units, institutions, or agencies within or external to the manufacturer, which perform the functions that support product marketing. The marketing functions are pervasive: they include buying, selling, transporting, storing, grading, financing, bearing market risk, and providing marketing information. Any organizational unit, institution, or agency that performs one or more of the marketing functions is a member of a channel of distribution.…

    • 298 Words
    • 2 Pages
    Satisfactory Essays