These constraints can have legal, environmental, andor managerial foundations. Today managers becoming more important due to the distribution issue, according to the distribution, physical distribution and. It is common for firms to use multiple marketing channels often with different strategies for each region they serve. Channels of distribution are of various types such as through jobbers, direct to consumer, direct to retailers, through brokers or agents etc. Through jobbers is perhaps the oldest and widely used channel of distribution. To create the product so that it responds to the customer needs and expectations. Pdf challenges of rural marketing in india belur baxi. Marketing is defined as a process of satisfying human needs by bringing products to people in the proper form and at a proper time and place. A great product isnt enough managing channel conflicts, developing winwin partnerships, and understanding omnichannel marketing and hybrid shopping behavior are just as important for success. There are four basic elements of the marketing mix product, pricing, place and promotion. Agricultural produce is normally channelled through the following types of market. Distribution challenges and workable solutions sciencedirect. A marketing channel is a means of reaching customers with products and services.
The aim of this paper is to understand the influence of the external environment and rural retailer purchase preference on the length of channels in rural areas in india. In this sense, modern vertical marketing systems, new business models and multichannel retailing can be observed. Distribution channels in marketing are one of the classic 4 ps product, promotion, price, placement a. Distribution channels definition types of distribution channels.
At the macro level or the industry level, there are basically two types of distribution channels. The chapter starts by showing the importance of the institutional and physical channel of distribution in global marketing. No wonder, the rural markets have been a vital source of growth for most companies. Types of distribution channels in rural marketing answers.
Distribution channels and marketing analysis your business. The role of distribution channel research and other details. This brief provides an overview of how the distribution channels for credit generate additional uncertainties for producers. In rural markets, trade is characterised by direct sales of small quantities of produce by producers to village traders and by sales by retailers to rural consumers. When creating a marketing strategy, your distribution channels should be one of your four core subjects of discussion along with product, price and promotion. Pdf marketing channel and consumer preference of poultry. There is a comprehensive and particularly welldeveloped distribution network serving the large supermarket chains in zimbabwe. Project report on the distribution channels for marketing. In marketing, they are united under the concept of distribution. Distribution logistics rural marketing logistics it involves planning, implementing and controlling the physical flow of goods, services and related information from point of origin to point of consumption. Ernst, independent writer center for profitable agriculture december 2010 the development of this publication was funded in part by the tennessee department of agriculture and usda rural development. Distribution channels in rural linkedin slideshare. The distributor then sells the product to retailers or customers distribution strategy 4.
Bhargavi reddy 2 1, 2 assistant professor, sri padmavathi mahila visvavidyalayam, womens university, tirupati 517501, a. The study identified the following channels for poultry. Farmers are thus unable to get good prices for their produce. A distributor is the middleman between the manufacturer and retailer. It needs to deliver a product customers want, at a convenient location, andat convenient times, so that your marketing effort is successful. B2b and b2c companies can sell through a single distribution channel or through multiple channels. Distribution in rural marketing the position of distribution in rural marketing is aptly explained by the following diagram. Marketing channel strategies in rural emerging markets. Product strategies for rural market indian perspective.
In this type of distribution channel, the movement might happen from the business product manufacturer to the end. In general, distribution channels are either direct, meaning the company interacts with customers directly, or indirect, meaning intermediaries perform activities on behalf of the company to reach customers. Own it officers to other projects saving the company. The route can be as short as a direct interaction between the company and the customer or can include several interconnected intermediaries like wholesalers, distributors, retailers, etc. All the four elements must be paid attention to for successful marketing and sale of products or services. An understanding of the structure of distribution in rural areas would help in the development of an efficient distribution system. This model minimizes distribution costs, allowing the company to offer better margins to the distributors and other channel partners who then push the sales of such products. How you distribute your products affects sales, product choices, marketing strategies and even profitability. The companies need substantial amount of working capital and large dedicated sales force. B2b channels b2b channels involve the movement of goods from a business company to a business company. Online channels and vending machines are comparatively new in india and would therefore be considered to have a higher level of novelty compared to direct marketing or network marketing channels.
Types of distribution channels distribution channel types. It describes how credit is administered and distributed, focusing on the effects access to agricultural funding has at the local level. Due to the size of the market, most producers of goods sell their products to wholesalers who in turn sell to supermarket chains and specialized outlets in towns and general dealer shops in rural areas. Prahalad, fortune at the bottom of the pyramid new jersey. Theyre a key element in your entire marketing strategy they help you expand your reach and grow revenue. Distribution strategies for rural market marketing lessons. Rural marketing involves addressing over 700 million potential consumers and over 40 per cent of the indian middle income. Along with price, distribution forms a major element in international marketing and the detail is essential if success is to be guaranteed. Rural marketing is the process of marketing in rural areas. Changes to the product can have a negative or positive. Rural distribution channel in india, with the total potential of 3,800 towns and 6,27,000 villages. Distribution of agricultural produce is also stymied by government intervention. To successfully market products in rural areas, distribution is a critical barrier which needs to be overcome.
How unilever reaches rural consumers in emerging markets. Rural marketing strategies, distribution strategies. Marketing has economic value because it gives form, time, place, utility to products and services. It covers the marketing strategies aspects of rural produce with special reference to products and services within the rural areas. Overviews of common direct marketing channels, including definitions, advantages and disadvantages, are provided. Conceptual framework for designing a rural distribution.
Thus, a channel of distribution is the route or path along which goods move from producers to ultimate consumers. Distribution channels can be also defined as marketing channels or market channels. Types of distribution channels in marketing bizfluent. A dms application or distribution management system dms is a collection of. In the distribution of industrial goods, there are fewer middlemen and shorter channel of distribution, which should be in your mind.
How to prepare strategy for marketing distribution channel. In some cases, these channels are a simple exchange of services between the business and the customer. Its potential, importance, problems and distribution strategy. A great product isnt enough managing channel conflicts, developing winwin partnerships, and understanding omnichannel marketing and hybrid shopping behavior are just as. The marketing of agricultural products begins at the farm when the farmer harvests his products. That means you have to have all the models, and all the styles and. The intermediated channels comprise a short supply chain linking farmers with consumers through the use of intermediary such as a distributor or supermarket.
Successful marketing distribution channel management enables companies to deliver their products to customers efficiently. Distribution channels always include the manufacturer and the final consumer, the main duty of distribution system is that place goods to potential customers in the right time and place. Nirma is aptly considered as a marketing miracle and this is reflected in the strength of the brand. Marketing channels ppt distribution business retail. Distribution channels are evaluated using three major criteria. Choosing direct marketing channels for agricultural products. Wholesaler locations work as feeder markets, from where the company caters to the requirements of nearby villages, places not covered by the distributor. Intermediated markets are relatively new market channels that have the potential to expand local and regional food systems while increasing the viability of small and mediumsized farms. They are conventional distribution channels and vertical marketing system.
Distribution strategy 3 definition distribution is one of the four aspects of marketing. However, at most of the time its the distribution which acts as a limiting factor in growth of the business in. There is no separate channel for rural distribution. Accessing rural markets, coverage status in rural markets, channels of distribution, evolution of rural distribution systems wholesaling, rural retail system, vans, rural mobile traders the last mile distribution, haatsshandies, public distribution system cooperative societies behavior of. Rural distribution model only motorable villages covered. B2b and b2c companies can sell through a single distribution channel or through multiple channels that may include. Apr 28, 2016 the distribution channels through which the industrial goods travel from the place of the production to the final consumers is known as industrial distribution channels. Considerations for choosing a marketing channel are then discussed. Understanding the rural consumer poor infrastructure physical distribution channel management promotion and marketing communication dynamics of rural markets differ from other market types, and similarly, rural marketing strategies are also.
Attaining competitive advantage through channel design 4. In their book marketing channels 7th edition, authors anne coughlan and erin anderson give the following definition for a marketing channel. Chapter summary along with price and promotion decisions, a decision has to be made on the distribution system. Project report on sales and distribution management pdf. Vaswani introduction close to seventy percent of indias billion strong population lives in villages and the rural economy contributes nearly half of the countrys gdp.
Distribution or marketing channels are systems of mutually dependent organisations included in the process of making goods or services available for use or consumption. In marketing, a distribution channel is a vehicle used by the company to sell its products and services to it customer base. Demandside misalignments in the channel structure that will occur if d. The pathways from your business to customers are called distribution channels.
The distribution channels through which the industrial goods travel from the place of the production to the final consumers is known as industrial distribution channels. Understanding the theory behind creating and maintaining these distribution channels gives. The right product means that you have the necessary inventory of product on hand,when the customer is shopping. The distribution system determines a products marketing presence and the buyers accessibility to the product. Nov 19, 2015 distribution strategies for rural market indian perspective in our last post we talked about product strategies one can adopt while managing business in the rural markets. Jul 03, 2012 topics to be covered distribution strategy. Distribution channels definition types of distribution.
As the rural marketing is a two way process, this article attempts to highlight issues and challenges associated with the rural marketing strategies. A distribution channel is a group of dependend on each other organisation units, which are taking part in process of flow of producst or services form producers to buyers. A distribution channel also called a marketing channel is the path or route decided by the company to deliver its good or service to the customers. Many of your other marketing decisions and efforts will be affected by your choice of selling methods and. Channels of distribution affect a large portion of product production and availability, as well as the place in which a product is sold.
This includes both the process of selling to customers and delivering the product or service to them. Marketing of agricultural produce among rural farm households. This lesson will discuss these channels, the types of distribution systems, and the goods and services that move along these channels. However, more often, the channel also includes intermediaries. Nirma has successfully challenged and changed the conventions of detergents marketing. There are 60 lakh outlets, both in urban and rural markets. After a product is manufactured it is typically shipped and usually sold to a distributor. Marketing mix and relationship marketing part i cases 1. The route taken by goods as they move from producer to consumer is known as channel of distribution. Conventional distribution channel according to kotler and armstrong 2001, a conventional distribution channel is a channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits even at. It is mostly companies with a limited number of skus and high sales volume that adopt this model.
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