Distribution Channel

A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors and even the internet itself.

1. DISTRIBUTION CHANNELS Presented By:- Rajat Baranwal

2. RETAILING Retailing is a final connection in the marketing channel brings goods from manufactures to consumers. It is combination of activities involved in selling or renting consumer good and service directly to customer.

3. CHARACTERISTICS OF RETAILING IN MARKETING CHANNEL Directly connected to the customers. Final stage of distribution channel of consumer product. It creates economic utility. Important link between retailer and customer. They are localizing. Retail marketing creates a place, time and possession utility for a product. R etail marketing creates visibility.

4. RETAILING FUNCTION IN DISTRIBUTION RETAILERS COLLECT PRODUCT ASSORTMENT AND OFFER THEM FOR SALE PROVIDE INFORMATION MARK PRICE AND PAY FOR GOODS CONCLUDE TRANSACTION WITH FINAL CONSUMER

5. ROLE OF INTERMEDIARY IN DISTRIBUTION INTERMEDIARIES CREATE UTILITY:- Create time, place, possession utility. They create place utility by making products available in locations where customers desire them to be available for buying. INTERMEDIARIES FACILITATE EXCHANGE EFFICIENCIES:- It offer exchange efficiencies and help reduce the exchange cost by providing certain functions or services.

6. INTERMEDIARIES MAY REDUCE DISCREPANCIES AND SEPERATIONS:- ASSORTMENT DISCREPANCY:- It refers to difference between the product lines a company produce and assortment customers want. QUANTITY DISCREPANCY:- It means the difference between what quantity is economical for the company to produce which is most cases is unique large. OTHER FUNCTIONS:- Warehouses, transportation, merchandising support, furnished market intelligence. Contd ….

7. DISTRIBUTION NETWORK

8. VERTICAL MARKETING SYSTEM A vertical marketing system is a distribution channel on Producer Wholesaler Retailer. In VMS work together as a unified group in order to meet consumer needs. 

9. HORIZENTAL MARKETING SYSTEM It Joining of two or more corporations on the same level for the purposes of pursuing a new marketing opportunity. Established so that the individual members can combine resources to make the most out of the marketing situation . Products from each member can be marketed and/or distributed together.

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