Elements of Distribution in Business

Summary:

Distribution in marketing refers to the activities undertaken by a company to make its products available in the marketplace. The functions of distribution include product delivery, price considerations, promotion, and managing the place of distribution. The main distribution objectives are efficient movement of products, wider geographic reach, proper storage, and achieving the lowest total cost. Distribution plays a crucial role in delivering satisfaction, adding value to products, providing means of production, and acting as a communication link between producers and consumers. It generates employment opportunities and involves various activities, flows, and participants. The distribution channel involves intermediaries facilitating the product transfer to the end customer. Major functions of distribution channels include providing market information, promoting products, contacting buyers, matching buyer needs with products, negotiating terms of sale, and handling physical distribution and financing.

Excerpt:

Elements of Distribution in Business

Subject: Marketing/ Business
Topic: Distribution

What is distribution?
Distribution involves various activities a company undertakes to make a product available in the marketplace.

# Functions of distribution
1)Product Delivery – One function of distribution is finding out who your customer is and how to get the product or service to the customer. The need for products may vary from customer to customer. Customers expect products on time. So, the distribution provides suitable products at the right time.
2) Price- The customer’s profile, the product, the types of orders, and other factors affect the price. These changes are not typically controlled by distribution. But distribution considers these factors and understands how the factors affect customers’ decisions.
3) Promotion- Promotion is another important aspect of an organization’s distribution process. Distribution can help to ensure that all the entities work together and produce the marketing materials needed to sell the products.
4) Place- The function of place in distribution allows the organisation to simplify the transactions between a product movement provider (transporter) and the customer.