How is distribution important in marketing

In terms of dropshipping and customers buying items online, merchants and customers do not get to try the product before they buy so they trust that the item will arrive just like in the pictures and descriptions.

This means that the distribution channel needs to be efficient at providing responses and comments across the whole channel. Distribution management refers to the main activities of distributing a product, which includes:.

E-distribution is the electronic product distribution of things like software and digital downloads. Such items include video games, computer software, movies, music, and ebooks. Due to the ease of purchase and the immediate receipt of purchase this industry is fast moving and highly profitable. Different from physical distribution, e-distribution has to be immediate for it to be successful. Customers who do not achieve a download link within minutes of a purchase will reach out to suppliers to receive this.

The downside of this form of distribution is that it requires a constant internet connection to receive the goods and also file formats may lead to corrupt or usable downloads that cause dissatisfaction among customers. Thus, these intermediaries break the bulk and meet the less quantity demand of the customers. When a customer goes to a retail shop, he may be fascinated by the attractive display of some new product, may get curious about that new product, and he may switch over to that new product leaving his regular product.

Thus merchandising activities of the intermediaries serve as a quiet seller at a retail store. The channels assist in executing the price mechanism between the firm and the final customers: The intermediaries help in reaching a price level which is acceptable both to the producers as well to the consumers.

Distribution channels assist in stock holding: The intermediaries perform various other functions like financing the products, storing the products, bearing of risks and providing required warehouse space. They assist in expanding product reach and availability, as well in increasing revenue. View All Articles. Similar Articles Under - Marketing Management. Distribution brings improvement in living standard of consumers through generation of employment, increase in income and transfer of ownership.

Hence, it brings positive effect in the society. Value addition. The functions of distribution such as transportation, warehousing, inventory management etc. Distribution mix plays an important role to increase the value of the products through delivery of goods in right quantity, at right place and right time.

Distribution serves as link between producers and consumers. Producers can make flow of information and messages to consumers about their products, price, promotion etc. Similarly, they receive information about customers, competitors and environmental changes from channel members. The function of distribution creates employment opportunities in society. Market intermediaries work as direct and indirect sources of employment. Different producers need to supply their innumerable products to consumers.

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