2.1.3.3 Place (Distribution)
Stanton (2006) defined distribution of a product as the route taken by
the product as it moves from the producer to the ultimate consumer. The
distribution responsibility of marketing encompasses the management of
both physical distribution and marketing channel activities. These are
performed to gather these two activities to link producers with
consumers and industrial users in the economic system.
Marketing managers must establish an operating relationship with their
resellers in the marketing channel. A marketing channel consists of
independent individuals and institutions that carry out the activities
needed to bring about the exchange of products in the market place.
The individuals or organizations according to Canon (1992), that make up
marketing channels engage in activities associated with the:
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Physical storage and movement of goods
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Transfer of title of goods
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Communication among the various individuals or organization in the
distribution system.
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Negotiation and ordering activities associated with exchange.
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Payment of products exchange through the channel.
Therefore the management of marketing channels consists of designing
channel structures, assigning functional responsibilities to all channel
members and coordinating and controlling the operation of the members to
ensure that individuals, organizational and total channel goals are
achieved. This is not an easy task because the manufacturer has to make
decision on which channel of distribution to use, given the constraint
of what is available. He has to design a channel system by first of all
establishing the channel objectives and constraints in term of
customers, products, middlemen, competition, company and environmental
characteristic. After this the major channel alternative has to be
evaluated using cost-benefit and adaptive criteria in relation to
appropriate channel chosen (Davis, 2001).
Manufacturers must endeavor to evaluate their middlemen performance by
setting certain standards such as sales quota, average inventory level,
and customer’s delivery time, treatment of damage or lost goods,
cooperation in company promotional and training programs (Anuforo and
Boniface, 2013; 2014).