Canales de distribución
Welcome and Introduction to Distribution Channels
In this section, the concept of distribution channels is introduced, highlighting their importance in facilitating the movement of products from producers to consumers.
Understanding Distribution Channels
- Distribution channels are essential for sales and product distribution, preventing chaos in industries.
- Strategies within distribution channels involve various agents like sales forces, back-office areas, trade marketing, customer service, distributors, logistics operators, wholesalers, retailers, merchandising agencies, and market audit agencies.
- Distribution strategies focus on managing channels transferring product ownership from manufacturers to consumers through intermediaries like wholesalers and retailers.
Functions of Distribution Channels
This section delves into the key functions performed by distribution channels to ensure effective product delivery and consumer satisfaction.
Key Functions
- Establishing contact with potential customers through intermediaries like wholesalers and retailers.
- Reducing transportation costs by utilizing intermediaries to distribute goods efficiently.
- Stimulating demand by understanding consumer needs and improving products based on market feedback.
- Additional functions include transportation, organizing offers, storing products, targeting specific audiences, market information dissemination, simplifying exchanges, offering product variety.
Types of Sales in Distribution Channels
This section explores different types of sales within distribution channels such as wholesale and retail sales.
Wholesale Sales
- Wholesale sales involve purchasing goods in large volumes at lower prices than individual purchases.
- Various types of wholesalers exist including full-service merchants who provide transport services and credit facilities; manufacturer wholesalers who directly sell to retailers; agent traders who earn commissions without holding inventory; limited-service wholesalers offering fewer services.
Retail Sales
Retail Distribution Channels
This section discusses various types of retail distribution channels, including specialty stores, department stores, discount stores, catalog sales showrooms, mail-order companies, hypermarkets, and the importance of market coverage.
Specialty Stores
- Specialize in offering a single type of product like furniture, shoes, or jewelry. Some are part of chains owned by a single entity.
- Provide a focused range of products catering to specific consumer needs.
Department Stores
- Offer a wide array of products ranging from electronics and white goods to clothing and groceries.
- Serve as one-stop shops for diverse consumer needs.
Discount Stores
- Evolved over time; initially offered discounted branded products in the 1950s.
- Currently focus on popular products at low prices without credit options.
- Typically have modest interior decor and extended operating hours.
Sales Distribution Strategies
This section explores sales distribution strategies such as catalog sales showrooms, mail-order companies, hypermarkets, and market coverage classifications like intensive distribution.
Catalog Sales Showrooms
- Display merchandise in-store but store inventory is stored elsewhere.
- Do not provide shipping services for free; e.g., shoe showroom displays.
Mail-Order Companies
- Often sell uncommon or high-priced products not readily available in stores.
- Modern versions operate via TV, phone, or internet platforms.
Hypermarkets
- Specialize in selling groceries and inexpensive fast-moving goods.
Market Coverage Classifications
Intensive Distribution
- Aim to reach as many consumers as possible; success hinges on product presence in the market (e.g., bottled water).
Exclusive Distribution
- Product distributed through few select outlets or even just one store.
- Common with luxury items where manufacturers choose exclusive representatives (e.g., high-end watches).
Selective Distribution
- Intermediate approach involving specific intermediaries adding value to the product.
- Often used for medium-priced quality items like household appliances.
Evolution of Retail Channels
Discusses the emergence of shopping malls as new distribution channels and their impact on consumer behavior and operational costs.
Shopping Malls
- Originated in the mid-'50s as new distribution channels attracting middle-class families for leisure activities.
Characteristics:
- High sales levels but entail high operational costs based on size and footfall volume.
Significance of Distribution Channels
Emphasizes understanding distribution channels' role in delivering products to end-users efficiently at reasonable prices through appropriate channel selection enhancing sales effectiveness.
Importance of Studying Distribution Channels
- Crucial for comprehending product flow to end-users considering multiple influencing factors ensuring timely delivery at fair prices.
Types of Distribution Channels
Level Zero or Direct Marketing Channel
- Producer directly sells to consumers with no intermediaries involved.
Level One Channel
- Involves an intermediary purchasing from the manufacturer then selling to end consumers.
Level Two Channel