Channels of Distribution
|
Factoryshop or Chainshop: is a shop that belongs to the manufacturer. He sells his product at his own
shops directly to the customer.
Agent or Salesman: is a person who works for one or more manufacturers. He himself doesn't buy the
products but he makes the contracts with the customers. For his work he gets a commission, e.g. 10%
on his sales.
The Wholesaler buys the products in bulk at the manufacturer and sells it in small lots to retailers or to the
consumer.
The Retailer: always sells to the consumer but he can buy from the manufacturer or from the wholesaler. If
the retailer only has one shop he normally buys from the wholesaler. Now the market situation is changing.
There is keen competition and there are big retailers who have shops in lots of cities, for example,
Wal-Mart. They will buy directly at the manufacturer so they can earn the money that normally the wholesaler
earns or they can set low prices because they don't have to pay the wholesaler.
The choice of distribution channel depends on the product and the target market.
If the manufacturer decides to set up his own distribution organization he has a lot of costs but he can
control the channel very well. It's useful for large & expensive products, in particular if the customer needs a
special customised product. If the manufacturer sells necessities he has to use retailers because the
consumers wants to buy necessities near their homes. Another question is which kind of retailer a
company wants to use. Foe example, a company produces shoes, it can sell the shoes in special shops
with high prices in the city or in a shopping mall or in a shoe shop or in the corner of a supermarket. It
depends on the kind of shoes the manufacturer produces and the customers to whom the company wants
to sell.
Transport
Transportation means the physical distribution of goods, the physical movement of goods from the
producer to the consumer, The kind of physical distribution a company chooses depends on the consumer.
The kind of physical distribution a company chooses depend on the kind of goods, the Distance and the
cost of the transport.
shops directly to the customer.
Agent or Salesman: is a person who works for one or more manufacturers. He himself doesn't buy the
products but he makes the contracts with the customers. For his work he gets a commission, e.g. 10%
on his sales.
The Wholesaler buys the products in bulk at the manufacturer and sells it in small lots to retailers or to the
consumer.
The Retailer: always sells to the consumer but he can buy from the manufacturer or from the wholesaler. If
the retailer only has one shop he normally buys from the wholesaler. Now the market situation is changing.
There is keen competition and there are big retailers who have shops in lots of cities, for example,
Wal-Mart. They will buy directly at the manufacturer so they can earn the money that normally the wholesaler
earns or they can set low prices because they don't have to pay the wholesaler.
The choice of distribution channel depends on the product and the target market.
If the manufacturer decides to set up his own distribution organization he has a lot of costs but he can
control the channel very well. It's useful for large & expensive products, in particular if the customer needs a
special customised product. If the manufacturer sells necessities he has to use retailers because the
consumers wants to buy necessities near their homes. Another question is which kind of retailer a
company wants to use. Foe example, a company produces shoes, it can sell the shoes in special shops
with high prices in the city or in a shopping mall or in a shoe shop or in the corner of a supermarket. It
depends on the kind of shoes the manufacturer produces and the customers to whom the company wants
to sell.
Transport
Transportation means the physical distribution of goods, the physical movement of goods from the
producer to the consumer, The kind of physical distribution a company chooses depends on the consumer.
The kind of physical distribution a company chooses depend on the kind of goods, the Distance and the
cost of the transport.
| The product a company has produced must be transferred efficiently to the user or customer. The company can do this with its own distribution organization or it can use other persons or other companies.
|
| Proudly serves in Houston, Humble, Spring , Jersey Village , Tomball , Woodlands, Porter Heights , Atascocita , Katy , Mission Bend, Sugar land , Stafford , Missouri City , Fresno, Cinco Ranch and in the following ZIP codes: 77001, 77002, 77003, 77004, 77005, 77006, 77007, 77008, 77009, 77010, 77011, 77012, 77013, 77014, 77015, 77016, 77017, 77018, 77019, 77020, 77021, 77022, 77023, 77024, 77025, 77026, 77027, 77028, 77029, 77030, 77031, 77032, 77033, 77034, 77035, 77036, 77037, 77038, 77039, 77040, 77041, 77042, 77043, 77044, 77045, 77046, 77047, 77048, 77049, 77050, 77051, 77052, 77053, 77054, 77055, 77056, 77057, 77058, 77059, 77060, 77061, 77062, 77063, 77064, 77065, 77066, 77067, 77068, 77069, 77070, 77071, 77072, 77073, 77074, 77075, 77076, 77077, 77078, 77079, 77080, 77081, 77082, 77083, 77084, 77085, 77086, 77087, 77088, 77089, 77090, 77091, 77092, 77093, 77094, 77095, 77096, 77097, 77098, 77099, 77338, 77339, 77373, 77379, 77375, 77377, 77354, 77355, 77362, 77365, 77346, 77396, 77380, 77381, 77382, 77383, 77384, 77385, 77386, 77429, 77433, 77449, 77450, 77489, 77477, 77478, 77479, 77459, 77469, 77545 |
 | |  | |  | |  | |  |
| | | | | | | | |
| Marketing Plans,Advertising,Business,Business Advertising,Business Ideas,Business Management,Business marketing,Business Plan,Business Planning,Business Strategy,Businesses,Marketing,Marketing Advertising,Marketing Articles,Marketing Campaigns,Marketing Concept,Marketing Mix,Marketing Objectives,Marketing Plan,Marketing Research,Marketing Secrets,Marketing Strategies,Marketing Success,Promotion,Promotional,Promotions,Sales,Sales Marketing,Small Business,Small Business Marketing,Stratigic Marketing,Strategy,Successful Marketing,Target Marketing, |