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  • Distribution Channels Explained

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    jagdip_barik
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    This document discusses distribution channels and provides examples. Distribution channels are networks of organizations that make products available for consumption and include producers, wholesalers, retailers, and consumers. Distribution channels are needed due to spatial discrepancies between production and consumption locations and the need to break bulk into smaller quantities. The 4Ps of marketing - product, price, place, and promotion - also factor into distribution channel decisions. Different organizations within distribution networks, like producers, distributors, and retailers, are discussed.

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    Sales and Distribution

    Original Title

    Distribution

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    This document discusses distribution channels and provides examples. Distribution channels are networks of organizations that make products available for consumption and include producers, wholesalers, retailers, and consumers. Distribution channels are needed due to spatial discrepancies between production and consumption locations and the need to break bulk into smaller quantities. The 4Ps of marketing - product, price, place, and promotion - also factor into distribution channel decisions. Different organizations within distribution networks, like producers, distributors, and retailers, are discussed.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    5 views10 pages

    Distribution Channels Explained

    Uploaded by

    jagdip_barik
    This document discusses distribution channels and provides examples. Distribution channels are networks of organizations that make products available for consumption and include producers, wholesalers, retailers, and consumers. Distribution channels are needed due to spatial discrepancies between production and consumption locations and the need to break bulk into smaller quantities. The 4Ps of marketing - product, price, place, and promotion - also factor into distribution channel decisions. Different organizations within distribution networks, like producers, distributors, and retailers, are discussed.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 10

    Distribution Channels

    What are distribution channels?


    Distribution Channels are set of interdependent organizations involved in the
    process of making a product or a service available for use or consumption

    Why is it needed?

    Spatial Discrepancy

    Breaking the bulk

    4Ps of Marketing

    Product

    Price

    Place

    Promotion

    Channel Partners

    Company that
    produces and
    markets the
    product

    Producer

    Wholesaler
    Buys and sells
    in bulk to
    retailers

    Last node of
    the
    distribution
    network, sells
    to consumers

    Retailer

    Consumer
    Customer or
    Consumer,
    buys from
    Retailers

    Distribution Network - Nestle


    Manfacturing
    Plant

    Carrying &
    Forwarding
    Agent

    Stockist

    Distributer

    Re-Distributer

    Wholesaler

    Retailer

    Retailer

    Wholesaler

    Retailer

    Retailer

    Channel Partners

    C&FA

    Stockist

    Warehouse, services, credit facility etc.

    Wholesaler

    Mainly suited for rural markets where the population pockets are scattered

    Distributer

    Normally 3rd party employed by the company, represents the company, experts at
    distribution

    Sells in bulk, cheaper prices (Multiple companies)

    Retailer

    Direct to consumers

    Margins & Effect on Price


    Maggi 2 Minutes Chicken Noodles 320g

    Best Distribution Strategy for a Product

    Type of product

    Customized? Perishable? For E.g.. Direct distribution by Dell

    Premium or mass?

    Market

    Geographical spread

    Nature of competition

    Business

    Size and scope can it afford in-house sales force?

    Objective Revenue or Profit Maximization?

    How much control does it want over distribution?

    Distribution Problems

    Thank You!

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