Fundamentals of Marketing

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Concept of Distribution

Distribution refers to the set of decisions and activities involved in delivering the product from the producer to the end customer through various intermediaries like wholesalers, retailers, and agents.

  • The channel of distribution involves several individuals and institutions such as producer, suppliers, industrial users, brokers, agents, wholesalers, retailers and consumers.

Objectives of Distribution:

  • To ensure availability of goods at the right place and time
  • To maximize customer satisfaction through effective delivery
  • To increase market coverage
  • To reduce distribution cost and improve efficiency
  • To build competitive advantage

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