___________ is anything that can be offered to a market that might satisfy a want or need in retailing

___________is where you can expect to find your customer and knowing this you have to look for a distribution channel in order to reach your customer.

___________refers to the quantity of payment requested by a seller of goods or services, rather than the eventual payment amount.

The prime of object of production is its _________

_____________is the oldest, shorter and the simple channel of distribution. The producer sells the product directly without involvement of any middle man.

In this method of indirect selling, product is passed on to the customers through intermediaries, known as wholesalers, retailers and agents.

It is commonly used channel of distribution. It is also known as traditional or normal channel of distribution. This channel is useful for small producers for small means. The channel is used for consumer goods. The common practice is that the manufacturer sells goods in large quantity to wholesalers, who sell goods to retailers in small quantity. Finally goods are sold to customers in pieces.

The common practice in this ___________ is that goods are sold by the producer to the agent, who sells it to the wholesaler, who sells to the retailers who finally sells goods to customers. This is the longest channel of distribution. This practice is useful, when the producer wants to the relieved of the problem of distribution. This channel is popularly used in textile.

◦Under this channel the producer sells goods to retailers, who sell the goods to customers. This channel is popular with the departmental stores, chain stores and supermarkets etc., because these are large scale retailers. Generally readymade garments, shoes home appliances and automobiles are sold through this channel.

_________is done through every reasonable outlet available – FMCG Strategy is to make sure that, the product is available in as many outlets as possible. Preferred for Consumer, Pharmaceuticals & automobile spare.

Multiple but not all outlets in the market Only a few selected outlets are allowed to keep the product Outlets selected in line with the image of the company wants to project. Preferred for High Value items like Jewelers

Highly selective choice of outlets, may be only one in the whole market. Could include outlets set up by the company itself

This is the effort of the producer / manufacturer to reach the product to his consumers Examples: Company owned retail outlets (Bata, Petrol Pump)Licensed Outlets (MC Donalds) Franchisees Brokers Vending Machines Company contracted Distributors

This is where producer / manufacturer uses existing channels to reach large number of end users. Examples: Existing wholesalers and Retailers Modern Retail formats Specialty shops (Shoppers stop)Discount stores (D Mart)

Include Multi level marketing systems Cooperative societies TV Home shopping Catalogue marketing Internet Exhibitions / fares / Trade shows Database marketing

Used in situation where there are same products but different market segments, unrelated products in same markets, size of buyer varies & reach is difficult. Company uses different channels to reach same / different market segment. FMCG’s have separate network for retail markets & institutions Pharmacy companies may use different channels to reach Doctors, Chemists &Hospitals

Are sets of interdependent organizations involved in the process of making a product or service available for use or consumption Whether selling products or services, marketing channel decisions play a role of strategic importance in the overall presence and success a company enjoys in the marketplace

________exist because producers cannot reach all their consumers Multiply reach and provide efficiency to the marketing process

________facilitate smooth flow and create time, place and possession utilities

Both are transporters who work between the company and its distributors they collect products from the company, store in a central location, break bulk and dispatch to distributors against indents

Name denotes the extent of re-distribution done by them ,distributors invest in the products – buy products from the company

It has the following characteristics :

Operate out of the main markets

•Deal with a number of company products of their choice

•Are not on contract with any company

•Sell to other wholesalers, retailers and institutions

•Negotiate about 15 days credit from company distributors – also provide credit to their customers

•Operate on high volumes and low margins

Operate out of their shops and sell a large assortment and variety of goods

Organizations that purchase products from suppliers, such as manufacturers or other wholesalers, and in turn sell these to other resellers, such as retailers or other wholesalers

Firms that work mainly in the business-to-business market selling products obtained from industrial suppliers.

Organizations that sell products directly to final consumers

Organizations that mainly work to bring suppliers and buyers together in exchange for a fee.

Offer services aiding in the movement of products, such as assistance with transportation, storage, and order processing.

Defines the extent of time, place and possession utility which the customer can expect out of the channel network

Steps for designing the distribution strategy are:

Policy guidelines includes: