1. Topic: Management of Distribution Unit: Distribution
4.02 Understand the concepts and processes needed to move, store, locate, and/or transfer ownership of goods and services
Topic: Management of Distribution
Unit: Distribution

2. Possible distribution channels
Retail outlets – owned by YOU or an independent chain
Wholesale outlets – same
Sales force – compensated by salary, commission, or both
Direct mail – via YOUR own catalog or flyer
Telemarketing – on YOUR own or contract out
Cybermarketing –
TV and cable – direct and home shopping channels

3. Factors that affect the choice of distribution
Perishability of the product – require rapid delivery and careful handling. Include items such as bread, fresh flowers, and ice cream.
Geographic distance between producer and consumer – As the distance between producer and consumer increases so does the number of channel members
Need for special handling of the product – for example gasoline or large computer systems. Will either have few handlers or go directly to the user

4. Factors cont’d
Number of users – the greater the number of users, the more channels members there probably will be.
Number of types of products manufactured – for example, pottery, probably sell directly to a wholesaler. Electrical products probably sell to large retailers.
Financial strength and interests of the producer – large companies who are strong are better able to perform marketing activities required to move goods through the least number of channel members

5. Selecting YOUR distribution channel
Choose a single channel or a limited number of distribution channels that offer:
Identify what competitors are doing
Analyze your SWOT
The greatest ease of entry against the competition
Lowest costs of entry compared to the competition
Least financial risk and commitment to the trade
Sufficient volume potential to reach short-term goals