Question 1
Introduction
Distribution management is part of the supply chain process that ultimately delivers
goods to end-users or consumers. Managing distribution is essentially managing the
movement of goods, whether it be from a wholesaler to a retailer or from a retailer to
a consumer. Distribution management focuses on the timely delivery of goods and
prevention of loss such as ensuring delivery of perishable goods without spoilage
through distribution channels. It is part of the larger logistics system that includes the
planning and creation of processes for managing supplies of goods and transport. It
involves several aspects, such as packaging, routing, warehousing storage, and fleet
management.
A distributor may be any individual or business that delivers goods to a customer. For
example, a pharmaceutical company is a distributor of products to pharmacies, while
an e-commerce business, such as Amazon, is a distributor of goods to consumers.
Distribution can be done through Direct distribution, exclusive distribution, selective
distribution and intensive distribution.
Direct distribution
With the direct channel, the company sells directly to the customer. For example, a
brewery that brews its own beer and sells it to customers at its own brick-and-mortar
location employs a direct channel of distribution. The seller delivers the product or
service directly to customers. The vendor might also maintain its own sales force or
sell its products or services through an e-commerce The direct channel approach
requires vendors to take on the expense
Exclusive distribution
This involves only a few intermediaries that agree to exclusively sell the vendor's
products. Deals are exclusive and limited to just those intermediaries. Exclusive
distribution is when a manufacturer grants a single retailer or distributor the exclusive
rights to sell their products within a specific region. The goal with this strategy is to
create a sense of scarcity. If the product is only found in certain locations, demand can
go up. Buyers can come to see it as something special worth going out of their way
for.
, Selective distribution
This involves a smaller number of intermediaries, using criteria set by the vendor such
as geographic region, service and support capabilities. The reputation of the
intermediaries is important in this method because vendors need to have a stronger
relationship with retailers in order to be selective. For example, a clothing
manufacturer might select certain small shops to distribute clothes versus using a
large chain.
Intensive distribution
This involves a large number of intermediaries. The vendor tries to place its product
in as many sales outlets as possible. This method is used with products that have a
high consumption frequency and a low cost of production. Examples include common
grocery items, such as eggs, bread and potato chips; bathroom products, such as toilet
paper; and tobacco products, including cigarettes.
Conclusion
In conclusion, A distribution channel is the network of individuals and organizations
involved in getting a product or service from the producer to the customer.
Distribution channels are also known as marketing channels or marketing distribution
channels.
Introduction
Distribution management is part of the supply chain process that ultimately delivers
goods to end-users or consumers. Managing distribution is essentially managing the
movement of goods, whether it be from a wholesaler to a retailer or from a retailer to
a consumer. Distribution management focuses on the timely delivery of goods and
prevention of loss such as ensuring delivery of perishable goods without spoilage
through distribution channels. It is part of the larger logistics system that includes the
planning and creation of processes for managing supplies of goods and transport. It
involves several aspects, such as packaging, routing, warehousing storage, and fleet
management.
A distributor may be any individual or business that delivers goods to a customer. For
example, a pharmaceutical company is a distributor of products to pharmacies, while
an e-commerce business, such as Amazon, is a distributor of goods to consumers.
Distribution can be done through Direct distribution, exclusive distribution, selective
distribution and intensive distribution.
Direct distribution
With the direct channel, the company sells directly to the customer. For example, a
brewery that brews its own beer and sells it to customers at its own brick-and-mortar
location employs a direct channel of distribution. The seller delivers the product or
service directly to customers. The vendor might also maintain its own sales force or
sell its products or services through an e-commerce The direct channel approach
requires vendors to take on the expense
Exclusive distribution
This involves only a few intermediaries that agree to exclusively sell the vendor's
products. Deals are exclusive and limited to just those intermediaries. Exclusive
distribution is when a manufacturer grants a single retailer or distributor the exclusive
rights to sell their products within a specific region. The goal with this strategy is to
create a sense of scarcity. If the product is only found in certain locations, demand can
go up. Buyers can come to see it as something special worth going out of their way
for.
, Selective distribution
This involves a smaller number of intermediaries, using criteria set by the vendor such
as geographic region, service and support capabilities. The reputation of the
intermediaries is important in this method because vendors need to have a stronger
relationship with retailers in order to be selective. For example, a clothing
manufacturer might select certain small shops to distribute clothes versus using a
large chain.
Intensive distribution
This involves a large number of intermediaries. The vendor tries to place its product
in as many sales outlets as possible. This method is used with products that have a
high consumption frequency and a low cost of production. Examples include common
grocery items, such as eggs, bread and potato chips; bathroom products, such as toilet
paper; and tobacco products, including cigarettes.
Conclusion
In conclusion, A distribution channel is the network of individuals and organizations
involved in getting a product or service from the producer to the customer.
Distribution channels are also known as marketing channels or marketing distribution
channels.
