Could you imagine when a product complete big campaign but not accompanied the placement of product at the market precisely?

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Distribution Strategy

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Channel Distribution
The combination of institutions through which
a seller market products to the user or ultimate
customer

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Major Types of Marketing
Intermediaries
 Middleman: an independent business concern that operates
as a link between producers and ultimate consumers or
organizational buyers.
 Merchant Middleman: a middleman who buys the goods
outright and takes title to them.
 Agent: a business unit that negotiates purchase, sales, or
both but doesn’t take title to the goods in which it deals.
 Wholesaler: a merchant establishment operated by a
concern that is primarily engaged in buying, taking title to,
usually storing and physically handling goods in large
quantities, and reselling the goods to retailers or
organizational buyers.

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Major Types of Marketing
Intermediaries
 Retailer: a merchant middleman who is engaged primarily in
selling to ultimate consumers.
 Manufacturers’ Agent: an agent who generally operates on
an extended contractual basis, often sells within an exclusive
territory, handles non competing but related lines of goods,
and possesses limited authority with regard to prices and
terms of sales.
 Distributor: a wholesale middleman especially in lines where
selective or exclusive distribution is common at the
wholesaler level in which the manufactures expects strong
promotional support; often a synonym for wholesaler.

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Manufacture
Manufacture
Manufacture
Consumers
Retailers Consumers
Wholesale Retailers Consumers
Manufacture Agent Retailers Consumers
Manufacture Agent Wholesale Retailers Consumers
Distribution Channel
Consumer Goods

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General Consideration in
Channel Planning
 Customer Characteristic
Number, geographic dispersion, preferred channel and
outlets for purchase, purchasing pattern, use of new channel
(e.g., online purchasing).
 Product Characteristic
Unit value, perish ability, bulkiness, degree of
standardization, installation and services required.
 Intermediary Characteristic
Availability, willingness to accept product or product line,
geographic market served, marketing functions performed,
potential for conflict, potential for long term relationship,
competitive product sold, financial condition, other strengths
and weakness.

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General Consideration in
Channel Planning
 Competitor Characteristics
Number, relative size and market share, distribution channel
and strategy, financial condition and estimated marketing
budget, size of product mix and product line, overall
marketing strategy employed.
 Company Characteristic
Relative size and market share, financial condition and
marketing budget, size of product mix and product line,
overall marketing strategy employed, marketing objectives,
past channel experience.
 Environmental Characteristic
Economic outlook, legal regulations and restrictions, political
issues, global and domestic cultural differences and
changes, technological changes and other opportunities and
threats.

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Wholesaling
 Benefit for manufactures
 Provide the ability to reach diverse
geographic markets cost effectively
 Provide information about retailers and
end users in various markets.
 Reduce cost through greater efficiency and
effectiveness in distribution functions
performed.
 Reduce potential losses by assuming risks
and offering expertise.
 Benefits for retailers
 Provides information about industries,
manufactures, and other retailers.
 Reduces cost by providing an assortment
of goods from different manufactures.
 Reduce cost through greater efficiency in
distribution functions performed.
 Benefit for end users
 Increase the products
alternative available in
local markets.
 Reduce retail price by
the efficiency and
effectiveness
contributed to the
channel.
 Improves product
selection by providing
information to retailers
about the best
products to offer end
users.

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Non Store Retailing
 Direct Sales: made by salespeople to consumers in
their homes or offices or by telephone.
 Vending Machines: relatively limited method of retail
merchandising and most vending machines sales are
for beverages, food, and candy.
 Television Home Shopping: includes cable channels
dedicated to shopping, infomercials, and direct
response advertising shown on cable and broadcast
network.

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