Understanding Distribution Channels in Marketing
Learn about different types of distribution, including direct and indirect channels, wholesale vs. retail, and the functions of distribution channels in marketing. Explore examples of retailers like department stores and specialty shops to gain insights into how goods reach the end consumer.
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Presentation Transcript
MARKETING MIX How the goods get from the producer to the customer.
TYPES OF DISTRIBUTION Direct distribution from a producer directly to customers Indirect distribution - distributing by the use of an intermediary (wholesalers, retailers) PRODUCER CUSTOMER Direct distribution PRODUCER COSTUMER WHOLESALER RETAILER Indirect distribution
DIFFERENCE BETWEEN WHOLESALE AND RETAIL Retail: A retail store sells individual items to the public (consumers). Wholesale: Wholesaler sells pallets of items to the retailer (other companies).
FUNCTION OF DISTRIBUTION CHANNELS Transportation - transports products from the manufacturer to retailers and customers. Information - collects and analyzes informations about current and potential customers, competitors, suppliers. Contact finds and establishes contact with prospective buyers.
FUNCTION OF DISTRIBUTION CHANNELS Matching - involves tailoring the product to fit customer needs. Financing - a distribution channel partner finances his costs, including buying and storing . Risk - a distribution channel shares some of the business risks.
TYPES OF RETAILERS Department store a collection of smaller retail stores, offers a wide range of products, is managed by one company. Example: Former department store Kotva or Prior Shopping centers - a large sales area, offering a full range of goods (food, fashion, electronic, household good) and services (hairdresser, cinema, fast food), prices of products can be various (expensive, cheap), each part is owned by different owners Example: OC Futurum Kol n, OC Chodov
TYPES OF RETAILERS Speciality retailers specialising in specific products, this type of retailer is able to offer the customer expert knowledge and a high level of service. Example: florist, butcher, fashion, stationery Supermarket focused on large range of food and beverage products. Sometimes you can buy there electrical products, fashion and household goods. Example: Kaufland, Tesco, Billa
TYPES OF RETAILERS Grocery stores a relatively small shops offering a narrow range of FMCG goods at higher prices Example: small shops in villages, shops with extended shopping hours ( Ve erka ) Discount retailer offers a variety of discounted products, they offer low prices on less fashionable branded products or returned goods at discounted prices. Example: Outlet shops
Resources: http://www.learnmarketing.net/place.htm http://www.the-reseller-network.com/content/88/types-of-retailers/ http://www.ehow.com/info_7751319_major-functions-distribution- channel.html
