* Concept * Types of channel distribution * Channel Design * Functions * Cost Allocation
* Advantages & Disadvantages
* Case Study
* Conclusion
Bucklin Theory of Distribution Channel Structure 1966
“A channel of distribution comprises a set of institutions which perform all of the activities utilised to move a product and its title from production to consumption.” Our paper today focuses on the “appraisal of distribution channels, advertisement strategy.”
Meaning of Distribution Channel
We all know that a marketing mix consists of product, price, place and promotion. Distribution channels help in the ‘place’ aspect of the marketing mix. Distribution provides place, time and possession utility to the final consumer. In our paper, we shall see how marketing channel decisions play a strategic role in the organizations success.
Functions of Distribution Channel
Distribution channels are intermediaries (wholesaler, retailer) or middlemen who – * Exist because producers cannot reach all their customers * Multiply the reach of the product by matching the buyer and the seller * Provide efficiency to the marketing process * Facilitate smooth flow of products from producer to consumer * Create time, place or possession utilities * Have the core competency and reach * Have the contact, experience and specialization of the operation * Provide marketing information to the buyer * Provide management services and advice when required * Helps with the financing when required and * Provides risk bearing techniques and bulk-breaking facilities
Types of Distribution Channels
Manufacturers and consumers are two major components of the market. Intermediaries perform the duty of eliminating the distance between the two. Based on necessity of the product distribution, below are the consumer, business to business and multiple marketing channels.
Consumer Channels
Bibliography: 1. http://www.slideshare.net/AnuragGupta18/hul-distribution-model 2. http://www.slideshare.net/9981123735/sales-and-distribution-channel-of-hul 3. http://www.slideshare.net/rsraghav/sales-distribution-hindustan-unilever-presentation 4. Hindustan Unilever: Scaling a cost-efficient distribution and sales network in remote markets 5.