Creating effective Product Distribution Channels for a business

Definition of Distribution: -

Distribution or product distribution is one among the four constituent elements governing the marketing mix, referred as the place often. Literally, product distribution, as the term itself refers to the procedure of ensuring a product or service available to a consumer or direct or indirect user.

Most of the time product distribution is conducted by the means of distribution channels or intermediates who act as a communicator between the producer and the end user or the ultimate consumer. Buyers who demand for the commodities or services for the purpose of reselling are also intermediates like the service brokers or agents.

Business owners design numerous channels for product distribution, which includes distribution by means of personal contacts or referrals. The channels can be categories on the basis of the degree of intermediaries operating between the producer and the end users.

Textbooks on Distribution:-

Some of the bestselling books on product distribution and management are enlisted below:

• The handbook of distribution and management, Rushton, Alan., Croucher, Phil and Baker, Peter, 1907.
• A treatise on political economy, Say, Jean Baptiste., Princep, Charles Robert. And Biddle Clement C., 1964.

Examples of Distribution: -

Example 1: Direct Marketing:

In the case of direct marketing, there are no intermediaries bridging up the gaps between the manufacturer and the consumer. The consumer directly purchases the products or services from the manufacturer by means of personal contacts or referrals or other forms of promotions.

Example 2: Level One Channel Distribution

Level one channel of product distribution is the most convenient and desirable form of the marketing mix. In this case, products will be distributed from producer or manufacturer to the retailer who will resell the goods to the end user finally. Thus, the retailer here acts as the only intermediary between the manufacturer and the consumer.

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