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PDF 1625242349885
PDF 1625242349885
PDF 1625242349885
BBA II semester
Date: 30th June 2021
Place
• It refers to the location where the products are available and can be
sold or purchased.
PLACE MIX
➢ Objectives of Distribution
1. Movement of goods: - The major objective of distribution is to
effectively move the product from the place of production to the place
of consumption through the marketing channel system. Products
move from manufacture to wholesaler to retailer and finally moved to
consumer from retailer.
2. Safety of product: - Distribution facilities safety of the product.
Distribution makes the channel members responsible to the proper
storage and handling of the product, so that the product reaches to
the buyer in proper condition.
3. Cost reduction: - Distribution involves several channel members.
They assist in delivering goods and services to the end consumer. So,
manufactures do not need to reach to the door step of every
consumer. Distribution helps in minimizing the cost of manufacture's
transportation and travelling.
4. Availability of goods: - Effective distribution channels facilities easy
availability of goods. Distribution channel also helps consumers to
assort the required products. Any product demanded by consumers
becomes available at any place and any time. Different products in
different countries and continents are assorted at the same place by
channel members. It ensures right goods at reasonable price at right
place.
Uma Chaudhary
Assistant Professor, BEL First Grade College
Marketing Management
BBA II semester
Date: 30th June 2021
Uma Chaudhary
Assistant Professor, BEL First Grade College
Marketing Management
BBA II semester
Date: 30th June 2021
Uma Chaudhary
Assistant Professor, BEL First Grade College
Marketing Management
BBA II semester
Date: 30th June 2021
1. Number of Buyers:
If the number of buyer is large then it is better to take the services of
middlemen for the distribution of the goods. On the contrary, the distribution
should be done by the manufacturer directly if the number of buyers is less.
2. Types of Buyers:
Buyers can be of two types: General Buyers and Industrial Buyers. If the more
buyers of the product belong to general category then there can be more
middlemen. But in case of industrial buyers there can be less middlemen.
3. Buying Habits:
A manufacturer should take the services of middlemen if his financial position
does not permit him to sell goods on credit to those consumers who are in the
habit of purchasing goods on credit.
4. Buying Quantity: It is useful for the manufacturer to rely on the services of
middlemen if the goods are bought in smaller quantity.
5. Size of Market:
If the market area of the product is scattered fairly, then the producer must
take the help of middlemen.
Uma Chaudhary
Assistant Professor, BEL First Grade College
Marketing Management
BBA II semester
Date: 30th June 2021
(E) Others
1. Cost:
A manufacturer should select such a channel of distribution which is less costly
and also useful from other angles.
2. Availability:
Sometimes some other channel of distribution can be selected if the desired one
is not available.
3. Possibilities of Sales:
Such a channel which has a possibility of large sale should be given weightage.
Uma Chaudhary
Assistant Professor, BEL First Grade College