Distribution Strategy

5379 Words Jul 20th, 2011 22 Pages
Pasig Catholic College
Bachelor of Science in Business Administration
Major in Marketing Management

Research Paper & Report
DISTRIBUTION STRATEGY

For Partial Completion of the Course
Marketing 25: Marketing Management

Submitted by:
Claudio, Patrick Angelo
De Belen, Pamela
Dosalla, Christian
Imperial, Graceshelle

Submitted to:
Mr. Abelito Quiwa, MBA
Objectives
1. To understand the development and management of the channels in distribution and the process of goods distribution in complex, competitive, and specialized economies. 2. To distinguish the different marketing intermediaries and the functions they perform in the distribution process 3. To know how to select the proper channels of distribution
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Classification of Marketing Intermediaries and Functions
Marketing intermediaries perform a number of functions that make possible the flow of goods from the producer to the customer. These functions must be handled by someone in the channel. Though the type of organization that performs the different functions can vary from channel to channel, the functions themselves cannot be eliminated. Channels provide time, place, and ownership utility. They make products available when, where, and in the sizes and quantities that customers want. Distribution channels provide a number of logistics or physical distribution functions that increase the efficiency of the flow of goods from producer to customer. Distribution channels create efficiencies by reducing the number of transactions necessary for goods to flow from many different manufacturers to large numbers of customers. This occurs in two ways. The first is called breaking bulk. Wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at a time to many different customers. Second, channel intermediaries reduce the number of transactions by creating assortments, providing a variety of products in one location, so that customers can conveniently buy many different items from one seller at one time. Channels are efficient. The transportation and storage of goods is another type of physical
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