Distribution

Distribution channel or marketing channel plays a very important role in making product available to customers at the right place and at the right time. AMA says "Distribution is the marketing and carrying of products to consumers."  Most of time the manufacturer doesn't sell the product directly to the customer but does it through intermediaries who make the product available to the customer.

There is various form of marketing channel or distribution channel. These are:-

Push and Pull Strategies:

In push strategy, manufacturer uses his sales force, trade promotion, money or other means to include intermediaries to carry promote and sell its products to end users. Domino’s pursues a medium push strategy in its distribution channel. The strategy for Vaseline not this as they heavily invest on advertising and promotion.

 

In pull strategy, manufacturer users advertising, promotion and other forms of communication to persuade the consumer to demand the product from intermediaries, thus inducing the intermediaries to order it. Vaseline uses this method quite often.

 

 Direct and Indirect channels:

In direct channel the product is delivered to the customers directly at his/her doorstep. Vaseline doesn't take this approach. Direct channel is successful when there is an extremely large market that is geographically dispersed. The direct channel is also useful when there is large no. of buyers.

 

Indirect distribution channel consist of one or more intermediaries between the manufacturer and the final customers.