Distribution Management

Distribution Management
Distribution, Distribution management, distribution channel, distribution strategy, logistics

In order to ensure a smooth flow of activities of goods/services from the producer to the consumer, then it is one of the important factors that should not be ignored is to choose appropriate distribution channels. The distribution channels are the institutions of the distributor/dealer institutions which have activities to channel/deliver goods/services from producers to consumers. Distributor Distributor/retailer is working actively to initiate the transfer of not only physically but in the sense of these items can be purchased by consumers. So here it is called the distributor/dealer from eg is an agent, wholesaler, retailer, and so on. But does not include the transport companies here that physically join funneling goods/services from the producer to the consumer, because this kind of transport companies do not have any moral obligation to strive in order for the goods/services may be accepted/ purchased by the consumer.

Because of his influence is huge against the smooth sales then this distribution channel issue should really be considered and absolutely should not be ignored. According to economic experts, David à Revzan "distribution channel is a line that is crossed by flows of goods from the manufacturer to the intermediaries and the end to the user".

Definition or understanding of this marketing channel was conceived by The American marketing Association, stressing about the large number of existing institutions in the flow/flow of goods. The associated States "channel is a structure of organizational units within the company and outside the company, consisting of agents, dealers, wholesalers and retailers, through which a commodity product or service being marketed"

The second sense has the meaning and function of a much broader, for it can be concluded that:

1. The channel is a group of institutions that exist among the various agencies that hold the cooperation to achieve a goal.

2. Purpose and distribution channels is to reach specific markets.

Thus the market is the ultimate goal of the activities of the channel.

3. Distribution channels implement two important activities for achieving the objectives, namely:

-hold a categorization, and

-distribute it.

Of the definitions advanced by the authors to note that the functions and role of distribution channels as one aspect of a company's marketing activities in an effort to distribute goods/services from the manufacturer to the end consumer It is a very important activity. Activities relating to the marketing of products, pricing and promotions, which do not yet be described as a concerted effort, if not equipped with distribution activities.

There are still many aspects that need to be arranged by the manufacturer in relation to distribution such as:

-Physical distribution.

-Irregularities.

-Smooth sale.

The terms of the sale.

-The requirements of the promotion.

Similarly, in deciding whether a product distribution will be handled on their own or be handed over to the trader, it certainly needs to be considered in good company, having seen and noticed things, such as:

-Sales Personnel, funding Needs

-The efficiency of work and funds,

-The State of the local infrastructure,

-Knowledge of the local market, and so on.

1. Place the territory of distribution channels

The process of distribution of products to the final consumer to be able to use long or short channels in accordance with the wisdom of the distribution channels which will be carried out of the company. Chain of distribution according to its shape can be divided into two, namely:

a. Direct Distribution Channels (Direct Channel of Distribution)

b. Indirect Distribution Channels (Indirect Channel of Distribution).

To discuss in detail about both the shape of the channel can be outlined as follows.

1. Direct distribution channel.

Is a form of channeling goods/services from producers to consumers and not through an intermediary.

Form of direct distribution channel can be divided in four (4)

kinds, namely:

1.) Selling at the point production. Is a form of direct selling is done in the production. Example:

-Fruit Growers do sales of fruits produced in his garden to the consumer.

-Apparel Business that sells directly to consumers of production results in place of the tailoring. It is indeed a form of sales as it does not require additional funds that will be used for the cost of transporting or intermediaries. Sales form is also very acceptable to consumers, since the price is usually cheaper and quality can be accounted for.

2) Selling at the producer's retail store Is a sale that is done in the retailer. The form of this sale is usually the manufacturers do not make sales directly to consumers but through/assigned to the retailer.

3) Selling door to door Are sales made by manufacturers directly to consumers with deployed salesmannya to homes or offices to the consumer.

4) Selling through mail The company's sales are conducted by using a postal service. b. the Indirect distribution channel Is a form of distribution channels that use the services of intermediaries and agents to channel goods/services to our customers. What is meant by intermediaries are those who buy and sell these items and have it. They engaged in trade and large retailers, whereas the definition of agent is the person or company who buys or sells goods for trade (manufacturer). Agents Act represents good seller or buyer in a transaction. His income is a percentage of the goods sold/purchased, whereas the definition of distributor are institutions that carry out trade by providing services or special functions that relate to the seller or the distribution goods, but they do not have the right to have the goods being traded. It is indeed a great many ways used to distribute goods and services to consumers, as outlined in the form of distribution channels distribution channels, namely, direct and indirect, but still a lot of companies combines multiple distribution channels to reach different segments of the market. For example, tires and paper mills can transmit its products directly to users (such as industrial users and users in large numbers), while for buyers who purchase in small quantities is served by large traders. There are several alternative distribution that will be used are based on the type of goods and its market segments, namely:

1. Distribution channels of goods consumption, intended for the consumer market segment.

2. Distribution channels of the goods industry, aimed at the industrial market segment.

a. distribution channels for consumer goods

1) Manufacturers---> Consumers
The form of this channel is the purest form is short and simple because without the use of intermediaries. Manufacturers can sell goods produced by post or directly come to the home consumer.

2) Manufacturers---> Retailers---> Consumers In this distribution channel producers wanted an agency to another, meaning in this case retailers who deliver products to the consumer, for which retailers direct buy products without going through wholesalers and resell it to consumers.

3) Manufacturers---> merchants---> Consumer Retailers
Types of distribution channels is conducted by the manufacturer who does not want to sell directly, but wanted an agency to disburse its products, so in this case the producers sell to wholesalers only. Later on there was great traders who resell to retailers and forward it to the hands of the consumer. So here's the manufacturers only relate to big traders.

4) Manufacturers---Dealer---> > Wholesalers — Retailers >---> Consumers
Other types of distribution channels that are often used by producers is to involve agents in it. Here is its function as a contracting agent who then set the sales system to funnel large merchants subsequently to retailers and then up into the hands of consumers. Distribution channels are often used for long lasting products.

5) Manufacturers---Dealer---> > Retailers--->
Consumers In this distribution channel manufacturers choose the agent that will be set up to run the manufacturer sales activities to retailers and retailers sell them to consumers. Essentially the distribution channels used either the dealer or retailer's aim is to gain an advantage with the target consumers. Agent on duty here bring together buyers with sellers. The dealer does not take ownership of the item.

b. distribution channels for industrial goods

1) Manufacturer----> User Industry
Distribution channels of the goods from the manufacturer to the user industry this industry the most channels is short and is called a direct distribution channel. Direct distribution is usually used by the manufacturer when the transaction sales to industrial users are relatively quite large and in this distribution channel producers sell directly to industrial users.

2) Manufacturer----> Distributor Industry----> User Industry
Goods manufacturers operating supplies and equipment type extra small can use industrial distributor to reach its market. Other manufacturers may use the distributor industry as a dealer, among other producers of building materials. Industrial distributors in the channel his efforts particularly in channeling the component parts and operating supplies needed by the user industry continues. Manufacturers of industrial distributor is wearing with the goal of keeping stuff for sure and easily retrieved directly by the user. Usually the distributor industry can do a more perfect sales from manufacturers because of their closer association with the users in a particular area. Industrial distributors often are very respected by the users, so booking-booking user depending from the distributor industry. In this case the manufacturer can only sell goods through industrial distributors.

3) Manufacturers---> Agent Distributor----> User Industry Industry
Distribution channels can be used by companies with consideration among others that the unit sales are too small to be sold directly. In addition, the factors to be considered in storage dealer anyway. In this very important storage agent role. Small producers and industrial goods are usually more mengkonsentrasi in the field of production and submit its distribution to the intermediary traders. Agent sales, distributor industry aiming at regulating the storage, selling and shipment.

4) Manufacturers---> Agent----> User Industry
Usually this kind of distribution channel used by manufacturers who do not have a marketing department. Also companies that want to enter the new marketing areas and prefer to use an agent. The manufacturer does not want to establish its own sales force and sales submitted to agents, while its distribution activities carried out by the manufacturer. The agent does not have the item but are responsible for setting the sale. Shipment is done directly from the manufacturer to the owner of the industry. Business and Marketing

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