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• Important decision related to physical distribution of goods
and services.
• Make product available.
• Channels of Distribution:
It refers to people or middlemen who help in distributing
of the goods.
• Without these middlemen its impossible for producer to
make goods available to customers.
• Some Examples of middle men :
whole seller, retailer etc…
Types of Distribution Channel:
• Direct:
In this type of channel goods/products are sold
by producer directly to consumer.
• Indirect:
Here goods are sold with help of middle men.
Types of Indirect Channel:
1. One level
2. Two level
3. Three level
Product Related Factors:
• Value : Price is an essential component, if it is
costly companies generally should follow Direct
or one level channel of distribution.
• Complexities: If product is complex, and requires
high level of technical knowledge then direct
level should be used.
• Nature: Customised product requires direct
channel. Standard product can be sold by indirect
channel.
• Perishable products require direct channel, while
non perishable requires indirect channel.
Company Related Factors:
• Finance: If company is financially sound then
only they should try direct channel. If
company is financially unsound they should
try indirect channel.
• Degree of Control: If company wants control
over the selling and price of its product then,
they should go for Direct Channel.
Competitive Factor:
• The type of channel selected by competitor
companies affects the selection of channel. As
a company we may select the same channel as
selected by competitor or sometimes the
businessmen prefers not to select the channel
selected by competitor. For example: if
competitor has chosen to sell detergent using
direct channel, businessmen can choose to
sell it using indirect channel.
Market Related Factors:
• Nature of market: In Industrial market direct
selling is preferred. Whereas in consumer market
distribution channels are appointed.
• Size of the market: Large number of consumers
require indirect channel, but if number of
consumers are less direct channel is preferable.
• Geographical : When buyers are concentrated in
limited area direct selling is preferred.
• Quantity Purchased: If order size is large then
direct supply from firm is preferred.
Environmental Factors:
• Other factors which affects this decision
include environmental factors such as trade
policy, economic policy etc…
• During Boom period indirect channel is used.
• During period of recession direct channel is
used to make goods delivered to consumers in
economical way.
Place Mix ( A part of Marketing mix)

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Place Mix ( A part of Marketing mix)

  • 1.
  • 2. • Important decision related to physical distribution of goods and services. • Make product available. • Channels of Distribution: It refers to people or middlemen who help in distributing of the goods. • Without these middlemen its impossible for producer to make goods available to customers. • Some Examples of middle men : whole seller, retailer etc…
  • 3. Types of Distribution Channel: • Direct: In this type of channel goods/products are sold by producer directly to consumer. • Indirect: Here goods are sold with help of middle men. Types of Indirect Channel: 1. One level 2. Two level 3. Three level
  • 4.
  • 5.
  • 6. Product Related Factors: • Value : Price is an essential component, if it is costly companies generally should follow Direct or one level channel of distribution. • Complexities: If product is complex, and requires high level of technical knowledge then direct level should be used. • Nature: Customised product requires direct channel. Standard product can be sold by indirect channel. • Perishable products require direct channel, while non perishable requires indirect channel.
  • 7. Company Related Factors: • Finance: If company is financially sound then only they should try direct channel. If company is financially unsound they should try indirect channel. • Degree of Control: If company wants control over the selling and price of its product then, they should go for Direct Channel.
  • 8. Competitive Factor: • The type of channel selected by competitor companies affects the selection of channel. As a company we may select the same channel as selected by competitor or sometimes the businessmen prefers not to select the channel selected by competitor. For example: if competitor has chosen to sell detergent using direct channel, businessmen can choose to sell it using indirect channel.
  • 9. Market Related Factors: • Nature of market: In Industrial market direct selling is preferred. Whereas in consumer market distribution channels are appointed. • Size of the market: Large number of consumers require indirect channel, but if number of consumers are less direct channel is preferable. • Geographical : When buyers are concentrated in limited area direct selling is preferred. • Quantity Purchased: If order size is large then direct supply from firm is preferred.
  • 10. Environmental Factors: • Other factors which affects this decision include environmental factors such as trade policy, economic policy etc… • During Boom period indirect channel is used. • During period of recession direct channel is used to make goods delivered to consumers in economical way.