Strategic plan of distribution

Let’s read!

Well, I’m going to review this

information to learn a lot
about the types of distribu-
tion channels and also the
kind of intermediaries and
their functions.

Types of Distribution Channels

There are two types of distribution channels: direct and indirect.

Direct channel is the shortest connection between the fabrica-
tor or producer and the end consumer, while the indirect channel
requires the participation of different intermediaries in order to
accomplish the full process.

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 Strategic plan of distribution

The diagram below compares both channels:

Intermediaries

People or firms called middlemen, who have an important role

in the product distribution channel. Throughout their mediation,
manufacturers deliver their products to final customers. In or-
der to achieve their purposes, intermediaries implement some
specific functions that normally, producers prefer not to do by
themselves.

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 Strategic plan of distribution

Functions of intermediaries

In order to achieve the final purpose of the distribu-

tion channel, intermediaries need to perform different
actions from collecting information to search for the
funds.

The next are the most important functions that intermediaries

must perform:

Investigation: they Contact: finding Physical distribution:

have to collect in-
formation to create
a strategic plan
and carry out the
exchange.
and contacting they establish the
potential buyers mechanisms to trans-
to sell them the port the services and
product. goods to stores.

Promotion: they Negotiation: it is related Adaptation: intermediar-

have to develop to the mutual agree-
and spread per- ment between sellers and
suasive messages costumers regarding the
about the product. price, in order to make
the transfer of owner-
ship.
ies have to determine the
design and adjustment of
a model to the product
according to the consumer
demands. This requires
activities such as manu-
facturing, sorting, assem-
bly and packaging.

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 Strategic plan of distribution

Funding: they are respon- Acceptance of risk: inter-

sible for searching funds
in order to cover the
costs of marketing pro-
cess.
mediaries have to accept
the risk involved in car-
rying out the marketing
functions in the distribu-
tion channel.

Conclusions

Determining the best channel of distribution of any product re-

quires analyzing several factors that influence it. One of the most
important aspects is to define the type of distribution. Essentially,
the main objective is to satisfy consumer needs.
Designing and adjusting an appropriate model of distribution
channel is a strategic tool that allows middlemen to participate as
a competitor in national and international markets.
A good channel structure defines the route to market leadership
and the overall success of the company.
Oh it has been very useful. Now, I know how to do the distibution
channel for being Sucessful my business!

References

Tompkins, J., and Harmelink, D. (1991). Strategic Master Planning: A

Distribution Imperative. Document # 50980. Industrial Development, De-
cember. Retrieved from http://www.conway.com/geofacts/pdf/50980.
pdf.
Thompson, I. (2007). Tipos de canales de distribución. Retrieved from
http://www.promonegocios.net/distribucion/tipos-canales-distribucion.
html
Salvador, M. (2004). Mercadotecnia programada: principios y apli-
caciones para orientar la empresa. México D.F. Editorial Limusa,
S.A. Retrieved from http://books.google.com.co/books?id=lx-31bK5
agMC&pg=PA320&dq=definir+canales+de+distribucion&hl=es&sa=X
&ei=47guUcrEIYiY8gSwr4GQCw&ved=0CCsQ6AEwAA#v=onepage&
q=definir%20canales%20de%20distribucion&f=false

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