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distribution is an important marketing
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activity and refers to the location
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where consumers can buy products within
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the mark mix distribution is known as
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place if products are not available in
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convenient locations then consumers may
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not have the time to search for them and
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therefore will not purchase
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them distribution includes how customers
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can access products and how products are
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transported
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from producers to
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customers the different ways of moving
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products from producers to customers are
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called channels of
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distribution a distribution channel is
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the route taken by a product from the
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producer to the customer there are a
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number of distribution channels that
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businesses can choose
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from the method of distribution used by
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businesses has changed significantly
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over the years especially with the
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growth of Technology that's enabled
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digital
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distribution a distribution Channel
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represents a chain of businesses or
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intermediaries through which the final
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buyer purchases a good old
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service there are three distribution
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channels here the first one is the
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producers selling directly to the
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consumers that's a direct method second
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one The Producers selling to the
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retailers and then the retailers selling
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to the consumers that's the modern
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method and finally the traditional
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method is where the producers would sell
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to the wholesalers and the wholesalers
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sell to the retailers and the retailers
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then sell to the
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consumers now it should be noted that
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more than one distribution channel can
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be chosen and many producers do
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this selling directly to Consumers here
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are some examples of how producers may
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do this could be via shopping parties
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online
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telephone Sales Direct Mail door-to-door
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selling selling directly to Consumers
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means that the producer keeps 100% of
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the selling price we may often find that
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they will therefore charge lower prices
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selling directly to Consumers is
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beneficial as it means that the
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producers higher profits can Finance
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more spending on Advertising product
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development or even website
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development when a producer is selling
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directly to a consumer it often means
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that promotions are sent through the
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post directly to customers or via email
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inviting them to purchase the products
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or
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services this method can be quite time
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consuming especially if customers are
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only buying small quantities producers
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would also have to arrange delivery of
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the goods which can be complex at times
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and expensive
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retailers are businesses that buy
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products and sell them directly to the
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consumer when a producer sells directly
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to the retailer it means that the
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products will now be in more places
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places that are convenient to Consumers
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which means more potential customers may
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come across a
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product retailers can add value they
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might include additional services such
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as Breakdown Cover gift wrapping
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services and warranties
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a disadvantage of this type of
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distribution channel is that small
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businesses may find it challenging to be
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able to have their products stocked in
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these retail
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outlets selling directly to
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wholesalers when producers sell directly
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to
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wholesalers this can help distribute
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their goods a wholesaler is the type of
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business that purchases Goods in bulk
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from a producer and then sells them to
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retailers producers can sell directly to
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a wholesaler then consumers or retailers
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can buy the products from the
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wholesalers this distribution channel is
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good if they make lots of a particular
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product as they're able to sell it in
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bulk if a producer sells directly to a
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wholesaler it means they do not
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necessarily have to communicate a lot
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with the consumer as a wholesaler will
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already have customers so products can
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reach lots of Po potential customers in
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a short space of
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time it can also lower distribution
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costs as the producer does not have to
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distribute products to many different
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locations this also means if retailers
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buy from wholesalers then the products
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may end up being sold in many different
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locations the disadvantages are that if
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consumers just purchase from the
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wholesaler then it means that they may
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get less customer service in comparison
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to other
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channels another disadvantage is that
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the wholesaler will also require to be
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paid as the producer is not selling
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directly to the
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consumer it should be noted that some
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producers are their own retailers the
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lights of Apple Samsung Chanel control
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their own distribution display and sales
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by running their own shops this is a key
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example of a multi-channel
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distribution just a reminder to like
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share and subscribe as I do Post
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regularly these are some of the elements
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that are involved when a producer
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chooses the appropriate distribution
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Channel
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control some producers want to have full
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control over the distribution channel
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for example producers of exclusive
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products may not want them to be sold in
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Outlets that they may think might not
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align with their brand
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image the nature of the product there
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are different types of products and
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these different types of products may
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require different distribution
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channels the market producers that sell
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Goods to mass markets are more likely to
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use
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intermediaries
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cost businesses will typically choose
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the most effective distribution Channel
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they may also prefer to have direct
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channels selling directly to
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Consumers many producers have websites
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so they can sell directly to consumers
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in order to keep costs
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low there have been changes in
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distribution to reflect social trends
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the way that goods and services are sold
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is very much subject to change many of
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these changes reflect social trends
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businesses need to be aware of this and
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make changes to Distributing products
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and services were required here are some
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examples in terms of the changes in
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distribution the building of American
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style shopping malls in the UK the
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growth of Charity shops shopping
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becoming more of a Leisure
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activity let's continue to look at this
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further the most important new trend is
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the development of online distribution
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also called e-commerce which is the
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buying and selling of products and
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services over the internet there are two
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types of online
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distribution business to Consumers B Toc
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and business to
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business B Toc business to Consumers
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this is a selling of products and
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services directly to Consumers now we
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can't talk about online distribution
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without mentioning
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eiling eiling involves activities
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related to selling goods and services
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over the Internet eilers do not have any
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any physical stores that customers can
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walk into examples are Amazon and
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Alibaba most detailing involves ordering
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of products and services online and
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taking delivery of it at home or work in
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addition to this click and collect
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services are becoming very much a trend
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with customers collecting their products
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in store or at a convenient Hub there
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are benefits to
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eiling businesses can access customers
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around the world
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detailing enables businesses to compete
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with larger businesses without requiring
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a retail
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space in regards to BTC most big
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retailers now have online
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services some small businesses May lack
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the ability or Finance to build and
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maintain a website or at times have a
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website but would like to be given more
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exposure and use more established
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platforms such as Amazon Etsy eBay to
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sell directly to the
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consumer the use of apps to purchase
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products and services has been on the
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increase this is where consumers will
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download an app make orders and purchase
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directly from there some retailers will
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offer incentives such as discounts if
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consumers download the app to make the
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purchase business to business this
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involves businesses selling to other
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businesses online for example it
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involves transactions between a producer
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and a wholesaler or a wholesaler and a
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retailer through an online sales
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portal this is a small Market businesses
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can use specialist software to purchase
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resources the software would help find
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the cheapest supplier for the business
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to
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consider changing from product to
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service in many Western economies the
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tery sector has
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grown as a result businesses have had to
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focus on the distribution of
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services most services are sold directly
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to the consumer so businesses have had
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to carefully consider how they are
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directly selling these to
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Consumers businesses have had to adapt
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to the change of technology and consumer
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buying
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habits take a look at some
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examples firstly the change from people
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purchasing the hard copy newspaper to
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now businesses allowing them to purchase
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new papers
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digitally moving very much away from the
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physical game with the PlayStation for
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example
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[Music]