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Distributors & Parts
Distribution (or placement) is one of the four aspects of marketing. A distributor is the middleman between the manufacturer and retailer. After a product is manufactured it is typically shipped (and usually sold) to a distributor. more...
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The distributor then sells the product to retailers or customers.
The other three parts of the marketing mix are product management, pricing, and promotion.
Explanation
Traditionally, distribution has been seen as dealing with logistics: how to get the product or service to the customer. It must answer questions such as:
Should the product be sold through a retailer?;
Should the product be distributed through wholesale?;
Should multi-level marketing channels be used?;
How long should the channel be (how many members)?;
Where should the product or service be available?;
When should the product or service be available?;
Should distribution be exclusive, selective or intensive?;
Who should control the channel (referred to as the channel captain)?;
Should channel relationships be informal or contractual?;
Should channel members share advertising (referred to as co-op ads)?;
Should electronic methods of distribution be used?;
Are there physical distribution and logistical issues to deal with?;
What will it cost to keep an inventory of products on store shelves and in channel warehouses (referred to as filling the pipeline)?;
The distribution channel
Frequently there may be a 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.
Channels
A number of alternate 'channels' of distribution may be available:
Selling direct, such as via mail order, Internet and telephone sales;
Agent, who typically sells direct on behalf of the producer;
Distributor (also called wholesaler), who sells to retailers;
Retailer (also called dealer or reseller), who sells to end customers;
Advertisement typically used for consumption goods;
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.
Read more at Wikipedia.org
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