Distribution Channels: Types, Features, and Intermediaries
This article explores the various types of distribution channels, their features, and the different intermediaries involved in the process. We’ll delve into the advantages and disadvantages of each channel, providing insights into how businesses can effectively reach their target markets.
Distribution Policy: Types of Distribution
The distribution policy outlines how a product reaches its final consumer. Here are some common types of distribution:
Exclusive Distribution
Exclusive distribution grants a single person or company the exclusive right to sell a product within a specific geographic area. This strategy is often used for luxury goods or products with specialized requirements.
Selective Distribution
Selective distribution involves choosing establishments that meet specific criteria set by the manufacturer. This approach allows for greater control over the product’s image and ensures it’s sold in appropriate locations.
Intensive Distribution
Intensive distribution aims to make the product available in as many outlets as possible within a given industry. This strategy is common for everyday consumer goods.
Extensive Distribution
: distributed even if not in the same market sector.
Features: Reduces the # of contacts: dealers expensive product actually reduces No transaction brings together the offer: intermediary is capable of performing the duties for a higher volume of activity, matching supply to demand buy sell large quantities after other intermediaries, Create range: Gather related products to facilitate the purchase, storage: it ensures that the product manufactured can supplies, provide services: Information about the product and its features, Advertise: Manufacturer supports advertising, setting prices:
The use of intermediaries may be appropriate in the following cases: -. When a company lacks the financial capacity, For geographical reasons, When consierda most important position in the market, prodcti Depending on which is being marketed, Na company must assess less experience in their distribution channels versus the traditional intermediaries already located. When muxos long and short channel intermediaries usually have only 1. The direct channel is a typical industrial markets: direct access to consumer manufacturer.
The design of distribution channels, 5 stages :1-Det objectives, missions 2Especificacion distribution ,3-Study ,4-Aanlisis alternative structures and evaluation of variables, 5.Eleccion the best channel. The varibales can be grouped into: Market: dimensions and buying habits of consumers, product conservation, weight and dimensions, Company: financial, posición.Intermediarios: costes.Entorno: economic and legal.
7.8 Intermediaries distribution channel A. The wholesalers: They usually are equipped with: Warehouses, Storage Management Methods, Transportation to place and distribute goods, Sellers own financial capacity to the manufacturer to the retailer.
Features: – Purchase of goods, Freight transport, batch fractionation, storage products, sold goods to wholesalers and retailers, participating in the financing of the distribution process, assumes the risks of theft and breakage of the goods from emerging factory.
Wholesalers full function: distributing a wide range of products.
Limited function wholesalers: · Wholesale Truck: large capacity sale and delivery of goods, · Wholesalers of office: they contact the manufacturer to the retailer, wholesalers · cash payment: deliver the goods against payment · Wholesalers mail order: send catalogs, specialized wholesalers.
Wholesalers in origin: they have their activity near the site of production
Wholesalers in destination Wholesalers in origin-destination: · Broeker: you contact the buyer and the seller to advise and charges comisión.-agent or representative: intermediary between manufacturer and retailer, ongoing relationship with manufacturer and typically represent several of them, those charged comisión.-Comisionista.-Cash and carry (paying and carrying)
B.los retailers or retailers: Under the form of ownership: · independent retailing: owner self-employed, independent · Retail rented · voluntary Chain: vertical partnership formed by wholesalers and retailers, where each retains its legal independence are associated to shop, retailers · Cooperative: the customer is the member of the cooperative, freedom to enter or to leave a part of it, · trading partners, · Franchise: Franchisor grants the franchisee to operate the derexo brand, providing the necessary assistance.All in exchange for payment. · Distribution Group, · Commissary: establishing ownership of a company or institution whose aim is social, · integrated Trade: commercial organizations that have retail outlets through which to distribute their products, are classified as: a) chain branches, B) Consumer Cooperatives.
· Depending on the type of establishment: · Market: municipal property. · Shop traditional trade is pekeño neighborhood, which has a range of products, · Convenience Stores: + uninterrupted schedule but high prices and limited suritdo. · Store specialty, discount · Shop · store, popular · Storage: + pekeño · ALmcacen factory, · Shopping Center, commercial · Gallery: traders who occupy the ground floor of a building. · shopping street: it concentrates a large # of businesses of all kinds or specialized · Category killer: only 1 type of products (toysurs) · Self: The buyer takes the goods from the shelves and pay in one box to salidam · Supermarket