Distribution the process is getting the product to the consumer,
Goods and services need to be distributed to either:
A place where the consumer can find them.
Delivered directly to the consumers
Distribution is the means of accomplishing this goal
Two major components of distribution:
Distribution: Selecting, developing and managing distribution channels. In other words, choosing how you are going to distribute it.
Logistics: Physically distributing the products though channels of distribution. In other words, finding how you are actually going to do it. Finding the people to do it, how much it costs and the time it takes to do it.
"Channels of distribution" refers to the paths of ownership that goods follow as they pass from producer to the final consumer.
There are several types of channels, and the selection depends on the distribution policy
These are they types and how they work.
*Intensive Distribution*
The company wants product sold everywhere
Ex: coke - multiple channels, multiple products, attempts to always be available
*Selective Distribution*
Attempts to control where the product is sold, pricing, etc
May prohibit other retailers(legally or illegally)
Ex: trendy clothing manufacturers
*Exclusive Distribution*
Deals are made with 1+ retailers so that they are the only ones who can sell a product
Gives prestige to product.
*Integrated Distribution*
Company owns manufacturing, distribution and retail businesses.