Distribution SS2 Marketing Lesson Note

DISTRIBUTION.

This is one of the marketing mixes, which includes activities such as channel of distribution, transportation, warehousing, storage etc. Products have been produced, marketers have to produce place utility i.e. create avenues to let the product get to the consumer at the right place.

Distribution, therefore, is defined as the process of moving a product from its manufacturing source to its customers.

TYPES OF DISTRIBUTION

There are three (3) major types of distribution.

1. Intensive Distribution: This is a distribution strategy in which forms make their products available in as many outlets as possible. This is to ensure maximum brand exposure and  consumer convenience.

Examples of products appropriate for this type of soft drink are toothpaste, 

candy, and bread. In intensive distribution, the burden of advertising and promotion rests on the shoulders of the manufacturer.

2. Selective Distribution: in this type of distribution, firms use only a few outlets to sell their products. This is to allow producers to concentrate on potentially profitable accounts. This type is commonly used for consumer shopping goods (e.g furniture, electrical appliances etc), consumer speciality goods (e.g. cars, jewellery, expensive fine clothes, high-quality musical instruments), and industrial accessory equipment.
3. Elective Distribution: This is a type of distribution strategy in which a supplier or manufacturer agrees to use only one wholesaling middleman or retailer in a particular market or region. This is adopted to gain more aggressive selling support on the part of the wholesaler or when channel control is important.

ESSENTIAL AIMS OF DISTRIBUTION

1. Delivery of the right goods.
2. Delivery at the right time.
3. Meet customers’ requirements.
4. Move goods to the right place.
5. Acceptable cost framework for the supplier.