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Ruby Ann Malixi, EzineArticles.com Basic Author
 
marketing Distribution
 
 
  Marketing Distribution
 
 
Distribution of your marketing collaterals in designated areas, locations - Promotional Gift Certificates and leaflets field distribution or any kind of information dissemination on field. Distribution (or "Place") is the fourth traditional element of the marketing. Mix with Product, Price and Promotion.
 
 
 
  Nature of Distribution
 
 
Most businesses use third parties or intermediaries to bring their products to market. They try to forge a "distribution” which can be defined as "all the organizations through which a product must pass between its point of production and consumption". Why does a business give the job of selling its products to intermediaries? After all, using intermediaries’ means giving up some control over how products are sold and who they are sold to. The answer lies in efficiency of distribution costs. Intermediaries are specialists in selling. They have the contacts, experience and scale of operation which means that greater sales can be achieved than if the producing business tried running a sales operation itself.
 
 
 
  Functions of a Distribution
 
  The main function of a distribution is to provide a link between production and consumption. Organizations that form any particular distribution perform many key functions:  
 
  Information
    Gathering and distributing market research and intelligence - important for marketing planning:
 
 
  Promotion
    Developing and spreading communications about offers
 
 
  Contact
    Finding and communicating with prospective buyers
 
 
  Matching
    Adjusting the offer to fit a buyer's needs, including grading, assembling and packaging
 
 
  Negotiation
    Reaching agreement on price and other terms of the offer
 
 
  Physical distribution
    Transporting and storing goods
 
 
  Financing
    Acquiring and using funds to cover the costs of the distribution
 
 
  Risk taking
    Assuming some commercial risks by operating the distribution (e.g. holding stock)
 
  All of the above functions need to be undertaken in any market. The question is - who performs them and how many levels there need to be in the distribution in order to make it cost effective? We at Malixi Marketing will help you making it all happen.  
 
 
 
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