This is also known as a distribution chain. It refers to the different stages or channels through which finished products pass from manufacturers or producers to final consumers. The distribution channel is the path through which goods move from the producer or manufacturer to the final consumers. The channel is the path through which the owner passes from the producer to the final consumers. The distribution chain can be demonstrated by the following scheme.
Manufacturer / Producer- Wholesaler- Retailer- Final consumers.
Distribution process
The goods distribution process involves all human and physical means from the manufacturer to the final consumers. The distribution process involves the following:
1. Intermediaries: Intermediaries or agents are human elements from manufacturers to final consumers. The intermediaries are wholesalers and retailers. Imagine a rice company that refines tens of thousands of tons of rice per week (more than 1000 bags of rice per week) and yet people come personally to buy rice from them. Not only will they operate at a loss, but they won’t be able to reach consumers who live far away. This is where middlemen come in. Middlemen from near and far places can come and buy these products in bulk and then distribute them on their various channels. Now, how can intermediaries bring these products to consumers? This is where the next point comes in.
2. Transportation: It is the means through which the finished products move by air, land or water from the manufacturer to the final consumers. The means or means of transport are Plane, boat, cars, trucks, train, etc. The type and quantity of goods largely determines the type of transportation that would be used to transport these goods. An international wholesaler that imports goods from another continent and in bulk in a way that meets the needs of their entire country with such goods will use ships and cargo as a means of transport. A middleman who transports about 1000 kg of biscuits as a business can use large vehicles and trucks. Also, what do you think of a car company and a design company? When transporting a large quantity of auto products to another state, it takes an airplane to do so, but it may not be necessary when transporting designer products, unless you are transporting them to another country or continent. Therefore, transport is very essential in the distribution trade.
3. Advertising: Advertising is the process of creating awareness in the public mind about the existence of a product. Advertising can be used to stimulate demand to increase sales. Products can be advertised on radio, television, newspapers, magazines, etc. Also the quantity and quality and demands of the products greatly influence your ads. Don’t expect a simple merchant to advertise their products on CNN and / or the BBC. It is just a small store and everything you need to raise awareness in your neighborhood. This can be accomplished through simple manual “conversation” and “verbal awareness.” And, of course, the company that makes the BMW car should use cable networks to advertise to global consumers.
4. Storage: Storage is a process that ensures that the goods produced are stored until they are needed. Storage is an important aspect of trade whose aim is to ensure a regular and constant supply of goods to consumers.
These factors can be very simple and straightforward, and marketers may not even need to read a book or article to know what to do. However, they are very essential in any form of marketing and therefore must be adhered to.
