Equine Students-Distribution

The final 'P' of the product marketing mix is distributin (Place). So why do we need intermediaries?

• For distributing information to other intermediaries and to final customer
• For promoting
• Contacts
• Matching
• Negotiating
• Physical distribution
• Financing

There can be a number of channels in a distribution chain.  For example Channel 1-Manufacturer sells directly to the consumer.  Channel 2 contains one intermediary, Channel 3 contains two intermediaries and Channel 4 contains three intermediaries.  The more channels in a distribution chain the more expensive the product/service may be as each intermediary has to get a share of the profits.

How should a company go about creating a distribution strategy?
There are a number of elements that need to be considered when devising a disribution strategy.  These are:

1. Channel Selection-market factors, producer factors, product factors, competitive factors
2. Distribution intensity-intensive, selective and exclusive
3. Channel integration-Conventional marketing channels, franchising, and channel ownership

When deciding on what partners to have in the distribution channel, the company also have to consider the possibility of conflict.  If conflict occurs how should a company deal with it?