FUNCTIONS AND CHOICE OF DISTRIBUTION CAHNNELS BY- INSTRUCTOR ASAKPA, P.E.
FUNCTIONS OF DISTRIBUTION: The following are some of the functions of distribution in marketing are:
It help to bring products nearer to the consumers.
It helps tom create jobs for a number of unemployed youths.
It helps to solve organizational complexity.
It promotes transaction efficiency.
It enhances specialization or division of labour.
It helps in diversification of promotional strategies.
It facilitates exchange process.
It helps distributors to adjust for discrepancies in the market’s assortment of goods and services through a process known as sorting.
It helps to standardized exchange transaction by setting expectations for products and the transfer process itself.
It helps to facilitate searches by both buyers and sellers that is demand and supply of consumers needs and wants.
It helps in market research activities.
It helps to save cost of production.
CHOICE OF DISTRIBUTION CAHNNELS: The choice of distribution channels clan be influenced based on the following criteria.
MARKET VARIABLES: This relates to where majority or bulk of the consumers are related that is, nearness to consumers location, patterns of consumers buying behavioural.
PRODUCT VARIABLES: This relates to weight, unit, value, technicality, personality of product, nature of product e.g. agricultural products, petroleum products, machineries and plants.
COMPANY VARIABLES: This relates to financial capacity of manufacturers, size, expertise and desire for managerial control.
INTERMEDIARY VARIABLES: This relates to cost, availability and kind of services provided.
BEHAVIOURAL VARIABLES: This relates to collective bargaining and behavioural pattern of consumers.
EXTERNAL ENVIRONMENTAL VARIABLES: This applies to government policy/regulations, competition, technological innovation, prevalent economic conditions, political and cultural settings etc.