St.
MARY UNIVERSITY
DEPARTMENT OF ACCOUNTING AND FINANCE
PROGRAM: - DEGREE
DIVISION: - REGULAR
COURSE TITLE: -PRINCIPLES OF MARKETING
COURSE CODE: - MkMa 1053
LECTURER NAME: - INSTRUCTOR WALAWENGEL_MAR
SECTION: -RAD/2015A
ASSIGNMENT TOPIC:-DISTRIBUTION AND PROMOTION
GROUP MEMBERS ID. NUMBER
DANIEL YOHANNES RAD/ 0012/2015
HANAN MOHAMMED RAD/0024/2015
HAYAT BARGICHO RAD/0025/2015
MENA BIRHANU RAD/0033/2015
NATNAEL NIGUSSE RAD/0037/2015
TEBIBU SOLOMON RAD/0044/2015
SUBMITTED TO: - INSTRUCTOR WALAWENGEL_MAR
SUBMISSION DATE:-04/11/2024 G.C
CONTENT
1. INTRODUCTION 1
2. DISTRIBUTION
2.1 MEANING AND IMPORTANCE OF DISTRIBUTION 2
2.2 MARKETING INTERMEDIARIES AND THEIR FUNCTIONS 3
2.3 CHANNEL DESIGN AND MANAGEMENT 4
2.4 FACTORS AFFECTING MARKETING CHANNEL DECISIONS 5
3. PROMOTION
3.1 MEANING AND SIGNIFICANCE OF PROMOTION
3.2 THE PROMOTION MIX ELEMENTS
3.2.1 ADVERTISING 5
3.2.2 PERSONAL SELLING 5
3.2.3 SALES PROMOTION 5
3.2.4 PR AND PUBLICITY 5
3.2.5 DIRECT MARKETING 6
4. SUMMARY 7
5. REFERENCE 8
INTRODUCTION
Marketing is a social and managerial process by which individuals and groups
obtain what they want and need Through creating, offering and exchanging products
of value with others and it also involves pricing, promotion, and distribution of goods,
services, and ideas to satisfy consumer needs and organizational objectives. In this
cause, Distribution and Promotion plays big role in ensuring products reach the target
market effectively and satisfy customer interest. In this assignment we have tried to
Explore some points about Distribution and Promotion according to marketing
principle.
RAD/2015A
11/2024 G.C
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1) DISTRIBUTION (PLACE)
1.1 MEANING AND IMPORTANCE OF DISTRIBUTION
Distribution In Marketing Refers To The Process Of Making a Product Or
Service Available To The Consumer Or Customers. It includes All The Activities
Involved In Getting The Product From The Manufacturer To The Final Customer.
This include :-
Transportation:- Moving the product from the manufacturing facility to
warehouses or directly to retailers.
Warehousing:- Storing the product until it is needed for distribution.
Inventory management:- Managing stock levels and ensuring enough product
is available to meet the demand.
Order processing:- Handling customer orders and ensuring they're fulfilled
efficiently.
Logistics:- Managing the overall flow of goods and information throughout the
distribution process.
IMPORTANCE
The importance of distribution in marketing mix is plenty but from those the
main are listed below
Accessibility :- it ensures that products are available as soon as possible both in
the right time, in the right quantity and in the right place when it is needed this
will satisfies customer needs and will build loyal customers.
Cost Efficiency :- if the distribution strategy is well-planned it will minimizes
costs and increases the speed of delivery in this case it will increase profitability .
Market Coverage :- it will Help the business to reach a wider customer and
maximize revenue that gone led too higher profit.
Customer Experience :- A strong distribution network will improve customers
satisfaction through timely deliveries and product availability.
Competitive Advantage:- Companies with efficient and effective distribution
channels can offer superior service and faster delivery compared to competitors,
giving them a strategic advantage.
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1.2 MARKETING INTERMEDIARIES AND THEIR FUNCTIONS
Marketing intermediaries are individuals or organizations that act as a
bridge between producers and the end user of products.
TYPES OF INTERMEDIARIES
A. Wholesalers:- They purchase large quantities of goods from
manufacturers and sell them in smaller quantities to retailers or other
businesses.
B. Retailers :-They sell products directly to consumers. Retailers can
be physical stores or online platforms, and they provide a convenient
location for consumers to purchase goods.
C. Agents and Brokers :- These individuals or firms act on behalf of
manufacturers to sell their products. They often receive a
commission for each sale made but do not take ownership of the
products.
D. Distributors :-. they are Similar to wholesalers, They purchase
goods from manufacturers and sell them to retailers or directly to
consumers but different from wholesalers distributors often have
exclusive agreements with manufacturers and may provide
additional services like delivery, storage,inventory management, and
marketing support.
E. Franchisees :- They operate under a franchisor's brand and business
model, selling products or services and benefiting from the
franchisor's established reputation.
FUNCTIONS OF INTERMEDIARIES
Transaction Facilitation and Storage :- They facilitate the logistics of getting
products from manufacturers to consumers and may store products for
distribution.
Market Information:- They provide insights and feedback from consumers to
producers, helping with market research and product development.
Promotion: They often help promote products through various marketing
strategies.
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1.3 CHANNEL DESIGN AND MANAGEMENT
Channel design and management refers to the process of developing and
overseeing the distribution channels that deliver products or services from
manufacturers to end consumers.
Steps in channel design
Identifying Target Markets:- Understanding who target customers to
determine the most effective way to reach them.
Channel Selection:- Choosing the types of intermediaries.
Channel Structure:- Deciding on the level of distribution, such as:
Direct:- Selling directly to consumers without intermediaries.
Indirect:- Using intermediaries to reach consumers (e.g., distributors,
retailers).
Channel Length:- Determining the number of levels in the distribution
channel
Channel Mix:- Combining various channels to maximize market reach and
efficiency.
- TYPES OF DISTRIBUTION CHANNELS
Direct channels
Direct Sales: The manufacturer sells directly to the consumer, often through
a sales force, online store, or physical retail outlet.
E-commerce: Selling products directly through a company’s website or
online marketplace without intermediaries.
Indirect channels:- using Financial intermediaries
Hybrid Channels/Multi-Channel Distribution:- a combination of direct and
indirect channels to reach different customer segments and it also allow businesses to
sell through various means.
- some Importance of effective channel management
for efficiency and market reach
Customer Satisfaction
Innovation and Growth
Competitive Advantage
Stronger Relationships with Intermediaries
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1.4 FACTORS AFFECTING MARKETING CHANNEL DECISIONS
- Internal Factors:- Company Size, Resources, Product Characteristics,Past
Experiences,Organizational Structure and Brand Image and Reputation
- External Factors:- Market Characteristics, Competition, Economic
Conditions, Laws and Regulatory Environment,Technological
Advancements,Cultural and Social Norms, Supplier and Partner Relationships.
2) PROMOTION
2.1 MEANING AND SIGNIFICANCE OF PROMOTION
Promotion refers to the activities and strategies a company employs to
communicate and persuade potential customers about its products or services. It is
one of the key elements of the marketing mix (commonly known as the 4 Ps:
Product, Price, Place, Promotion). The primary goal of promotion is to inform,
persuade, and remind consumers about a brand or product, ultimately driving sales
and enhancing brand awareness.
Objectives of promotion
It will Create Awareness,
Generating Interest,
Driving Sales.
2.2 THE PROMOTION MIX ELEMENTS
2.2.1 ADVERTISING :-It is Paid promotions through various media channels
Types Of Advertising
1. Print Advertising:- such as Newspapers,Magazines and Brochures and Flyers
2. Broadcast Advertising:- such as Television,Radio.
2.2.2 PERSONAL SELLING :- Direct interaction between a salesperson and a
potential buyer to persuade them to purchase.
- some Techniques like understanding customer needs, communication skills, and
closing strategies will help us to have effective personal selling
2.2.3 SALES PROMOTION :-Short-term incentives to encourage the purchase of a
product, such as discounts, coupons, contests, or samples.
2.2.4 PUBLIC RELATIONS(PR) AND PUBLICITY:-is the strategic
communication process that builds mutually beneficial relationships between
organizations and their publics. It involves managing how information is conveyed to
various stakeholders, including customers, employees, investors, and the media.
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2.2.5 DIRECT MARKETING:-It is Communicating directly with consumers
through different methods.
Common Channels Used In Direct Marketing are
Email
Telemarketing
Direct Mail.
Some Benefits of promotion
1. Increase Brand Awareness
2. Boost Sales
3. Educates Consumers
4. Competitive Advantage
5. Feedback Collection
6. Cost-Effective Marketing
7. Boosts Morale and Motivation
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SUMMARY
Marketing is a business process that plans, places, and promotes
goods and services to satisfy the conditions. Distribution refers to
delivering products from the manufacturer to the target consumer.
Promotion encompasses the conditioning that communicates product
benefits and converts guests to buy. As we've seen through doing this
assignment, we understand that both distribution and creation are critical
factors in a successful marketing strategy. Effective distribution ensures
product vacuity and approachable client gests, while strategic creation
informs and persuades consumers, driving deals and brand fidelity.
Together, they enhance the overall effectiveness of marketing sweats.
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REFERENCE
INTRODUCTION TO MANAGEMENT MODULE MgMt2011
PRINCIPAL OF MARKETING MODULE MkMa 1053
[Link]
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