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Understanding Marketing Distribution Channels

The document outlines the concept of distribution as a key element of the marketing mix, specifically within the 'place' category. It describes various distribution methods, including direct and indirect distribution, and details different distribution channels for consumer and business products. Additionally, it highlights three distribution strategies: intensive, selective, and exclusive distribution.

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Parvathaneni Karishma
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9 views6 pages

Understanding Marketing Distribution Channels

The document outlines the concept of distribution as a key element of the marketing mix, specifically within the 'place' category. It describes various distribution methods, including direct and indirect distribution, and details different distribution channels for consumer and business products. Additionally, it highlights three distribution strategies: intensive, selective, and exclusive distribution.

Uploaded by

Parvathaneni Karishma
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Marketing Mix: Place

Distribution
 Distribution in marketing is an element of the “place” category in the
four P's of marketing.

 Distribution is the process of making a product available for the


consumer or business user who needs it.

 Direct Distribution: Companies sell products and services directly to


customers through their own stores, websites or merchant
marketplaces.

 Indirect Distribution: Companies sell products and services to


customers through marketing channel.
Distribution
 marketing channel or channel of distribution is a set of
interdependent organizations that eases the transfer of ownership as
products move from producer to business user or consumer.

 A distributor works with the manufacturer to promote and sell its


products to other supply chain entities, either wholesalers or
retailers.

 Wholesalers: buy and sell goods in bulk. Wholesalers can be a link in


the marketing distribution chain, selling their products to retail
stores.

 Retailer: a channel intermediary that sells directly to consumers.


Distribution Channel for Consumer
Products
 In the zero-level channel, the manufacturer sells directly to the
consumer.

 In the one-level channel, the manufacturer sells the product to


retailer who in turn sells it to consumer.

 In the two-level channel, the manufacturer sells its product in bulk


to a wholesaler, who sells the products to retailers where consumers
can purchase them.

 In the three-level channel, the manufacturer works with a distributor


who distributes the products within a specified geographic area and
connects with wholesalers or retailers.
Distribution Channel for Business
and Industrial Products
Distribution Strategies
 Intensive distribution: involves selling products through a large
number of different channels. Product is made available in
abundance. (convenience product)

 Selective Distribution: Limited number of intermediaries are chosen


to distribute the product. (Shopping Products)

 Exclusive Distribution: The distribution of product is through a


single intermediary in a specific geographic area. (Specialty Products)

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