The essence of marketing distribution policy
Marketing policy of distribution - an activity of the enterprise organization, planning, implementation and monitoring of the physical movement of products from the place of production or production to places of use or consumption in order to meet customer needs and achieve their goals. If the production is the "heart" of the industry, the distribution system - it is "circulatory system".
Thanks to buy and sell, maintain and transform goods carried servicing customers, learn, generate and satisfy demand offset costs that have occurred in the production of goods. Utility marketing distribution policy is to ensure: the timely offering of goods (utility time), receipt of goods to places demand (utility space), changes in the shape and appearance of products in order to achieve them more attractive to consumers (utility forms), the possibility of acquisition of goods (utility ownership ).
The key marketing distribution policies - designing distribution channels.
Channels of distribution - a route on which the products are moved from the place of production or production to places of consumption or use, stopping at certain points, passing from one owner to another, a set of companies or individuals who take the responsibility to help pass or someone else ownership of goods (services) on their way from producer to consumer.
The functions of distribution channels can be grouped into the following groups:
a) functions related agreements:
- Purchase or receive goods for that, resale or transfer to consumers;
- Sale of products that contact with potential buyers, product promotion, receiving and order fulfillment;
- Taking over the business risk (if ownership of the product);
b) logistic functions:
- Selection of products that create the necessary range for good customer service;
-zberezhennya resulting product, its quality characteristics;
-sortuvannya, acquisition, separation of large quantities of products to meet the needs of consumers;
- Transportation products.
- Commercial lending customers;
-ohlyad, test, evaluation of products, defining its brand and quality;
- Marketing research;
- Product planning, advising producers that respect the needs of consumers, the dynamics of demand in the market place products on the basis of the conditions of competition, stages of product life cycles, etc;
- Pricing, margins, discounts and other terms of sale of goods;
- Informational, industrial, commercial and other services.
The main criteria that determine the effectiveness of distribution channels, shown in Table. 27.
There are two basic types of distribution channels - direct and indirect.
Direct (without intermediaries) distribution channels used by companies who want to control their entire marketing program to maintain close contact with customers, have a limited number of target markets, sufficient resources and expertise to organize the sale.
Indirect (moving goods through intermediaries) enterprise distribution channels used to expand the market, the broader their reach, increase sales of goods.
There are direct distribution channels (from producers to consumers) and reverse (from consumers to producers) go. The latter are used for the distribution of business waste, returnable packaging, sub-standard products and others.
Examples of industrial distribution channels and consumer shown in Figures 48, 49.
The main characteristics of distribution channels is their length, width and types of subjects.
The length of the distribution channel - the number of available therein intermediate levels. The level distribution channel - is any intermediary that performs a particular job to bring the goods and property rights to them to the end user. For example, the length of the channel in which producers and consumers connect wholesaler and retailer, is two. The so-called zero channel (channel length is zero), a channel that connects producers and consumers directly (unmediated).
The width of the channel of distribution or intensity - the number of intermediaries at each level of the distribution channel. Thus, if the products are on the first stage of distribution comes to three wholesalers, and the second - to fifteen retailers, the channel width equal distribution respectively 3 and 15 (Fig. 50).