Category: Distribution Channels

Physical Distribution Supply (With Diagram)

Physical distribution management is that part of general management which is responsible for the design, administration and operation of the systems to control the movement of raw- materials and processed goods. The structure of physical distribution system or arrangement of any marketing organisation is made up of four broad components namely, order processing, inventory …...

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Warehousing Benefits: Top 10 Benefits of Warehousing – Explained!

Warehousing has many benefits to offer to traders/businessmen, whether it is wholesale or retail, it provides a number of benefits listed as under: (i) Safety and Preservation: Manufacturers, importers, wholesalers, exporters, traders and stockiest use warehouses to store their goods (raw materials and finished items) before distribution and sale. Besides, serving the storage purpose, …...

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Top 6 Elements of Physical Distribution Channels (With Diagram)

The various elements of a physical distribution system are: 1. Customer service: Customer service is a predefined standard of customer satisfaction, which a retailer plans to provide to its customers. Without defining and setting ‘standards of customer service’, retailers cannot achieve competitive advantage over their competitors. A customer service standard may be that 95% …...

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Need for Warehousing (6 Reasons)

The six reasons justifying the need for warehousing are as the follows: (i) Seasonal production: We know that certain items are produced during ‘particular period of the year, like agricultural goods are harvested during a particular season say summer, winter or monsoon, but the requirement of consumption takes place all over the year. Therefore, …...

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Top 8 Features of Ideal Warehouses

An Ideal warehouse constitutes of the following features:  (i) Proper Location: For effective movement of goods and cost saving, warehouses should be established at places, which are convenient to both the buyer and the seller. These warehouses should be set up near railway stations, major highways, seaports and airports, where goods can be loaded …...

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5 Main Factors Influencing Channel of Distribution

The selection of a proper channel of distribution is very important. A number of factors influence this decision. These factors are: (A) Product Considerations: The nature and type of product helps in determining a decision about channel of distribution. (i) Price of Product: A high priced product will have less middlemen because the …...

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The Role of Dealers in Marketing and Distribution

The Role of Dealers in Marketing and Distribution! The commercial policy of the manufacturer often lays down the terms and conditions and responsibilities for the intermediaries. Generally, these include price policies, terms of payment, return policy, territorial rights and so on. (a) Price Policy: This sets out the price at which middlemen will …...

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Channel of Distribution and Functions of Marketing Channels

Channel of Distribution and Functions of Marketing Channels! 1. Channel of Distribution: Definition: A channel of distribution is known as marketing channel. A channel of distribution is the structure of intra-company organisation units and extra- company agents and dealers, wholesale and retail through which a commodity, a product or service is marketed. Marketing …...

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Wholesaling: Importance, Functions and Types of Wholesaling

Wholesaling: Importance, Functions and Types of Wholesaling! Wholesaling is the buying/handling of products and services and their subsequent resale to institutional users and in some cases to final consumers. Wholesaling assumes many functions in a distribution channel, particularly those in the sorting process. Manufacturers and service providers sometimes act as their own wholesalers. …...

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Rural Marketing Developments in India

Rural Marketing Developments in India! 1. HUL spends Rs. 50-60 crore every year for rural marketing and promotions. The rural company started “Operation Bharat” to tap the rural markets. Under this operation it passed out low-priced sample packets of its tooth paste, fairness cream, shampoo and cold cream to 20 million household. HUL’s …...

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