Product Distribution
Product distribution (or place) is one of the four elements of the marketing mix. An organization or set of organizations (go-betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user.
The other three parts of the marketing mix are product, pricing, and promotion.
The distribution channel
Distribution is also a very important component of Logistics & Supply chain management. Distribution in supply chain management refers to the distribution of a good from one business to another. It can be factory to supplier, supplier to retailer, or retailer to end customer. It is defined as a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain ' or the 'channel. ' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user.
Channels
A number of alternative 'channels ' of distribution may be available:
• Distributor, who sells to retailers via direct marketing, or brokers can also be used,
• Retailer (also called dealer or reseller), who sells to end customers
• Direct Distribution (Direct Marketing),where an organization sells its products directly to the end customer. For example in case of online purchases(Internet Marketing and E-commerce) there will be the seller and customer. For this the seller and the customer may depend on various shipping providers.
• Advertisement typically used for the consumption goods
Distribution channels may not be restricted to physical products from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc. process
The other three parts of the marketing mix are product, pricing, and promotion.
The distribution channel
Distribution is also a very important component of Logistics & Supply chain management. Distribution in supply chain management refers to the distribution of a good from one business to another. It can be factory to supplier, supplier to retailer, or retailer to end customer. It is defined as a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain ' or the 'channel. ' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user.
Channels
A number of alternative 'channels ' of distribution may be available:
• Distributor, who sells to retailers via direct marketing, or brokers can also be used,
• Retailer (also called dealer or reseller), who sells to end customers
• Direct Distribution (Direct Marketing),where an organization sells its products directly to the end customer. For example in case of online purchases(Internet Marketing and E-commerce) there will be the seller and customer. For this the seller and the customer may depend on various shipping providers.
• Advertisement typically used for the consumption goods
Distribution channels may not be restricted to physical products from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc. process