Distribution - Term Overview

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The definition of distribution is related to the set of actions that are carried out from the moment a product is made by the manufacturer until it's purchased by the final consumer. The objective of distribution is to guarantee the arrival of a product or to the customer.

Distribution is one of the factors or variables of the marketing mix, also known as the marketing mix. It's integrated into the so-called ' Four P's' of classic marketing along with product, price and promotion.

The concept of distribution is very important to guarantee the sales of a product, since it's not enough to have a quality article at a competitive price. It also needs to be accessible to users. Hence, the product has to be placed in authorized points of sale.

Product distribution in marketing

Decisions on distribution are strategic for companies. It's not so easy to vary a distribution channel, since they are generally regulated through contractual links when other companies participate or have required a very expensive investment when it comes to a proprietary network. Any change should be seen in the long term.

In the distribution process, the position of the company is essential. In the case of a manufacturing company, you will have to decide the distribution channels it uses, the functions it assumes and the degree of presence it wants the articles to have on the market. For their part, a distribution company must decide on the selection of suppliers, the conditions of the transactions and the search for a profitable market where it can operate with businesses.

In the distribution of a product, it must be decided which channels can be used, the possibility of distributing it through wholesalers, the number of intermediaries that can participate, the period of availability of the good, if it's an exclusive distribution and possible limitations in logistics, among other things.

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