- Aarti.G.

Lulla
BBA Dept II year

 An

area in which the forces leading to the

transfer of title to a particular product
operate and towards which and from which
the actual good travels.
- Clark & Clark

 An

activity, set of institutions and process for

creating, communicating,delivering and
exchanging offerings that have value for the
customers and society at large.
- American Marketing Association

Product

Price
Marketing
Mix

Promotion

Place

 Process

of moving goods / services from the

point of production to the point of
consumption is termed as DISTRIBUTION

Physical
Distribution

Distribution
Channels

Packaging
Warehousing

Inventory

Transport

Physical
Distribution

Order
Processing

 According

to AMA
The structure of intra company
organisation units and extra company agents
and dealers, wholesalers and retailers
through which a commodity, product or
service is marketed.
According to Kotler
A channel is a set of independent
organisations involved in the process of
making a product or service available for the
use of consumption.

 Specialization
Effective

division of labour
To Bridge the gap between the producer and
user
To create utility for the consumer
Place utility
Time utility
Form utility
Information utility

Transactional
Functions
Buying
Selling
Risk-taking

Logistical
Functions
Rearrangerment
Storing
Sorting
Physical
Distribution

Facilitating
Functions
Financing
Grading
Marketing
research

 Communications
Contact
Matching/Customizing
Negotiation
Service
Relationship

Management
Product Assembly

 Source

of Market Information
Stabilizing the Prices
Promotional Activities
Routinisation of Decision
Help in Pricing
Forecasting
Financing
Title

 Customer

Characteristics
Product Characteristics
Perishability
Bulky Products
Fashion Products
Specialised Products
Standardised Products

 Characteristics

of the Manufacturer
Characteristics of the Existing Distribuiton
System
Competitive Characteristics
Environmental Characteristics

 Agent
Broker
Commision

House/Commision Merchant

Dealer
Distributors
Jobbers
Rack

Jobbers

 Resident

Buyers

Retailers
Wholesalers
Retailers
Facilitating

Agencies in marketing
Manufacturers agent

 The

Wholesaler is the first important link in

the field of distribution of goods. He
connects both the manufacturer and
retailers.

 Assembling

and dispensing function

Large quantities of goods
Specialized business
Generally sells it to retailers
Helps in sorting, grading, transportin and
financing

 Relieves

the manufacturer from the trouble

of finding a market by buying the entire
stock
Makes large orders for goods
Provides financial help in the form of
advances to producers
Provides storage facility
Keeps the manufacturer informed about the
market information

 Provides

all the requirements to the retailers

Takes the trouble of selling the goods in
small quantities
Provide financial assistance by providing
credit facilities
Provides information about the new products
Retailer can inspect the goods
Provides a ready market for the retailers

trade which consists of selling to the

ultimate customers of a variety of products
in small lots.
It is the last link in the chain of distribution
of goods.

 He

gets his supplies usually from wholesalers

and sometimes directly from the
manufacturers
Sells it directly to consumers
Sells it in small quantities
Deals in a variety of goods

 Sells

goods in small quantities according to

the requirements of the consumer.
Keeps adequate stock of many goods needed
by his customers everyday
Operates mostly in residential areas
Brings new products & varieties to the notice
of the consumer

 Grants

credit facilities to reliable customers

Provision of after-sale service
Undertakes home delivery & door delivery
services

 Information

about the customers feedback

and their changing taste and preferences is
provided to the manufacturers
Manufacturer is free to concentrate on
production as retailers buy the products from
the wholesalers

Types of
retailers

Itinerant
traders

Fixed shop
retailers

Small Scale
Retail shops

Large scale
retail shops

Itinerant
Traders

Hawkers

Pavement
shops

Market
Traders

Cheap
traders

Street
stalls

Speciality
shops

Small
scale
retail
shops
General
stores

Secondhand
goods
dealer

Mail Order
Business

Departmental
stores

Multiple
Shops

Customers
so-operative
societies

Vending
machine

Discount
houses

Supermarket

Shopping
centres

One-price
shop

Manufacturer

Consumer

Manufacturer
Retailer

Consumers

Manufacturer

Wholesaler

Retailer

Consumer

Manufacturer

Wholesaler

Jobber

Retailer

Consumer

Manufacturer

Industrial
Consumer

Manufacturer
Industrial
Distributor
Industrial
Consumer

Industrial
consumers
Industrial
Distributors
Manufacturers
representative

Manufacturer

Manufacturer

Manufacturers
sales branch

Manufacturers
representative

Industrial
consumer

Industrial
distributor

Principles of Marketing Sherlekar,Nirmala Prasad & Salvadore

Vector 2005 - (230 - 247)
Marketing Management - Kotler - 13th edition - (408)
Marketing management - Czinkota & Kotabe - 2nd edition -(339)
Marketing management - Winer - 3rd edition - (330)
Marketing Management-By M. C. Cant, J. W. Strydom, C. J.
Jooste- (406)
Marketing Management - N.Kumar - (196)
Marketing Management- 4E By Saxena - (447)
Marketing management - Arun kumar - (280)
Introduction to Marketing By Johan Botha, Johan Strydom,
Annekie Brink - (130)
Principles of Marketing - Ashok Jain - 2009-10 -(82)
Basics of Distribution Management: A Logistical Approach By
Satish K. Kapoor, Purva Kansal -(29,30)
Marketing Management By F. Lao - first edeition - (443)