Unit 4

Distributions channels and physical Distribution

Q1) Define Physical Distribution with its features.

A1) Physical Distribution:

Physical dispersion is a significant advertising capacity describing the promoting exercises identifying with the progression of crude materials from the providers to the processing plant and the development of completed merchandise from the finish of creation line to the last customer or client. Physical circulation is the study of Business Logistics where by the correct measure of the correct sort of product is made accessible at where interest for its exists. Seen in this light, physical circulation is key connection among assembling and request creation.

Factor Affecting Channel Selection-

Predominant elements influencing channel determination are examined beneath:

Q2) What are the types of Marketing Channels?

A2) Types of Marketing Channels-

The conveyance of merchandise relies upon the manner in which you market your products. The way used to cause accessible in the market to fluctuate as indicated by the products made and it is additionally the inclination of makers that how they need their merchandise to be promoted. In this article, you will find out about the various kinds of promoting channels utilized by makers.

Manufacturer to Agent to Wholesaler to Retailer to Consumer: A specialist is a mediator that helps the maker to disperse products on the lookout. It deals with commission from the producer. The occupation of the specialist is to move products in the market just after the request is gotten. For example, in the restorative business, it isn't feasible for a retailer to arrive at maker to get corrective products to sell on the lookout. In this manner, makers utilize specialists to offer their products to wholesalers at various areas. The distributer offers merchandise to retailer and retailer further offers products to purchasers.

Q3) Who are Retailer and wholesalers?

A3) Wholesale sells goods in bulk to retailers and corporations at cheap rates. Wholesalers buy products in bulk, divide them into small parts, repack them and sell them to retailers. Wholesalers sell only specific items and are most not curious about the situation of the shop, packaging and display of products. They’re more curious about the standard of the merchandise, not the number.

Retailers usually buy goods from manufacturers, wholesalers, or other distributors and resell them to the general public. Large retailers like Walmart and target buy goods in huge quantities from manufacturers and wholesalers, but small family-run pharmacies and native grocery stores are often purchased from an equivalent store OR from smaller vendors.

Q4) What are the main functions of wholesalers?

A4) Below are the main functions of wholesalers-

1. Purchase and assembly - Wholesalers buy products from various manufacturers and assemble them for supply to retailers. They store these products in warehouses and ensure the availability of products as per specific region demands.

2. Warehouse storage - Wholesalers can not only buy products, but also store them in warehouses. The quality of the product is kept intact. Products are shipped to retailers on time, and the demand is based on being efficient and effective, which ensures a time lag between manufacturing and consumption. The product reaches the consumer without wastage as intended by the manufacturer.

3. Breaking the bulk - It is impossible for the manufacturer to manufacture and supply a small amount of products on the target market. The work of breaking bulk is done by wholesalers. Consumers buy products for home use in small quantities. This helps retailers in storing little products to meet the demands of consumers in the market. When the retailer's inventory is depleted, the retailer approaches the wholesaler and buys a small amount of the product.

4. Distribution of products to retailers scattered in the target market–wholesalers help to distribute products across the market to retailers. This helps manufacturers and wholesalers become the source of all purchases for retailers because the task of dispersing products is no longer with them and they can focus on other marketing functions. Retailers do not need to contact the manufacturer.

5. Market information sources - Wholesalers are an important source of information for manufacturers. Information about demand, competitors, customer preferences, as well as alternative products are available at wholesalers. They receive this information from retailers. They not only receive information, but also distribute information from manufacturers to retailers and other players in the market. For example, the launch of a new product by a manufacturer, the market position of the manufacturer, etc.

6. Financing - Wholesalers do business on credit with manufacturers, as well as retailers. Retailers cannot buy products by giving a large amount of money; receive goods on credit, which will help new retailers in the market. Similarly, wholesalers give money in advance to the manufacturer for the products they will receive later. This feature will help the easy flow of the product, even if the money is not exchanged immediately.

7. Grading and packaging – Wholesalers not only break the bulk, but also package the goods a little and grade the packaging quality. This is a very important marketing function that helps consumers make decisions

8. Transport - Wholesalers buy products from wholesalers and ship them to warehouses or godam. From there, the product is supplied to retailers, etc. If your own car. Since wholesalers are in touch with retailers, supply is also done effectively (on time) and efficiently (lower prices possible).

9. Risk bearing – The product is exposed to many risks like destruction–natural, as well as unnatural disasters. It can also be spoiled by the transportation of the climate, but it will not spoil if it is sold to the expiration date. Products also bear the risk of not being sold for less demand, lowered prices for competitors and alternative products. Manufacturers already sell their products to wholesalers, so this risk is borne by wholesalers. To avoid such risks, wholesalers carefully buy products in the right amount and choose different types of insurance.

10. Advertising - Advertisements of new products is done by distributing brochures, hoarding, mouth publicity, television advertising, etc. This helps manufacturers in growing the market. Consumers learn about the launch of the product and its advantages, helping them to make the right decision when buying a product.

Q5) List the common retail format.

A5) A retailer is often not only a business selling goods, but also a service provider. Household appliance chain Best Buy, for instance, features a Geek Squad division in retail stores that provide repair services for the products it sells. Additionally, the Geek Squad makes house calls and has a web customer service operation.

The list of common retail formats or types is as follows:

Today, retailers got to be Omni channel, meaning that to succeed, they need to sell in multiple sorts of venues (or retail channels). Today our customers don't like multiple options to shop for from your favorite brand.

Q6) How do retailers work?

A6) Retailers must somehow be found out to sell on to consumers. As for this commitment decision, how digital locations connect products to the market. Most modern retailers usually make strategic decisions based on:

Choosing to start out a retail business involves tons of designing and preparation; from researching your market to writing a business decide to hiring staff. Before you begin selling, confirm that you simply have all the required documents that you need. You would like to urge an employer number (EIN), which are some things sort of a Social Security number for your business. Most vendors you're employed with require you to possess an EIN before doing business with you. It’s liberal to apply for EIN on the IRS website.

Having an Ein means you're liable for a spread of taxes, including sales taxes, so know what your local and state taxes are and if you're federal and native you are doing not skills to proceed, ask your local Chamber of Commerce. Although the mercantile establishment also depends on the business license. Check your municipal office to seek out what you would like. Local and state laws also determine whether you would like a resale license, industry-specific certificate, or occupancy certificate for your brick and mortar store.

Q7) Define Promotion.

A7) Meaning:

Promotions allude to the whole arrangement of exercises, which impart the product, brand or administration to the client. The thought is to make individuals mindful, draw in and prompt to purchase the product, in inclination over others. There are a few kinds of promotions. Over the line promotions incorporate publicizing, official statements, purchaser promotions (plans, limits, challenges), while beneath the line incorporate exchange limits, gifts, impetus outings, grants, etc. Sales promotion is a piece of the general promotion exertion.

1. Personal selling: One of the best methods of client relationship. Such selling works best when a decent working relationship has been developed throughout some undefined time frame. This can likewise be costly and tedious, yet is best for high worth or premium products.

2. Sales promotions: This incorporates gifts, challenges, limits, free administrations, passes, tickets, etc, as particular from publicizing, exposure and advertising.

3. Public Relations: Public relations is the intentional, arranged and supported exertion to set up and keep up shared comprehension between the organization and people in general.

Q8) What do you mean by promotional mix?

A8) The meaning of the promotional mix:

Promotion-the combination presents an optimum combination of different promotional tools and techniques; with a view to maximizing sales and profits.

No need for promotion combinations arise because all promotional tools and techniques are equally effective and attractive. The combination of promotions gives variety to the marketing manager's promotional efforts. The main elements of the promotional mix are:

(i) Advertising

(ii) Salesmanship (or personal sales)

(iii) Promotional methods again, the promotion of the product may be carried out by environmental factors that happen by accident. For example, a popular star in a movie may be shown to wear certain types of shoes or to enjoy certain brands of soft drinks.

Therefore, propaganda is environmental advertising. It is considered more effective than advertising. Perhaps because it is not made by a manufacturer who can often be charged with making false or tall claims, endorsing his own product.

But for laymen, both advertising and advertising terms are synonymous. The distinction between the two is of a technical nature and is of interest to academics and management experts. From a discussion point of view, it may be inappropriate to consider publicity as an element of the promotional mix.

Publicity, in fact, is very effective in promoting sales, but since management does not have a hand in doing publicity, it is necessary that the planning publicity-good or bad-of the promotional mix be accepted only by management. In fact, bad publicity can have a negative effect on sales.

Q9) What are the Factors affecting promotions-mix?

A9) Factors affecting promotions-mix:

Some important factors that affect the formulation of a promotional mix are described below:

(i) Type of product:

For industrial and durable goods, product demonstrations must explain how to handle them, safety instructions, etc.; Personal sales must be more emphasized than advertising and sales promotion. Standardized popular goods require more of an ad than a personal sale to maintain and extend the demand.                                                                 

In fact, products of different nature and varieties require different promotional equipment; and there are no standard rules in this regard that govern the choice between the elements of the promotional mix.

(ii) Product age:

For new and innovative products, personal sales are better; in order for the salesperson to easily provide prospects about the nature and practicality of such products, also to prepare the base for demand creation, active advertising is necessary.

For older products whose popularity has been diminished by intense competition, on the part of the general public, it may be possible to boost demand by raising interest in the product.

(iii) Number of consumers and their spread:

Personal sales can be more effective and cheaper if the number of consumers is small and concentrated in a particular geographical area. However, if the number of consumers is large and widely spread, advertising may produce better results in terms of creating awareness about the product.                      

 An added aspect here could be the type of consumer, such as women, gentlemen, children and the elderly. For example among women and children, the technology of sales promotion may better meet the expectations of manufacturers in producing quick sales, because the popularity of the product develops.

(iv) Promotion budget:

Different elements of promotion-mix have different financial implications. The promotional budget, that is, the size of the funds available for promotional purposes, should have a decisive say in the formulation of the promotional mix.

(v) Stages of the product lifecycle:

The stages of the life cycle that the product is going through have a significant impact on the promotional mix. During the introduction stage there may be a need for emphasis on all aspects of the promotional mix to create maximum awareness about the product for example. By phasing out saturation, aggressive advertising is more promoted.

In the reduction phase, you may need to reduce your spending and effort on all elements, such as the promotional mix. However, taking into account the stages of the product's life cycle, there is no standard formulation for the formulation of the promotional mix, and the different products are different from each other in terms of its life cycle.

(vi) Strategies used by competitors:

The ideal promotional mix of companies must be formulated against the background of the competitor's promotional strategy. In fact, the manufacturer's promotional mix is better aligned with the major competitors ' promotional mix to face the challenges posed by them.

(vii) Appeal to prospects: different promotional techniques vary in prospects, depending on whether they are.

1. Urban or rural

2. Educated or uneducated (or uneducated)

3. Service class people or business class people

To give an example in this context, a busy person in business class may say that he never likes the sight of a salesman and always wants to avoid meetings with them. To influence such a person, advertising is a better promotional technique that does not involve a busy time.

Q10) What do you mean by Radio Advertising?

A10) Radio advertising:

The ad will be broadcast from all Indian radio commercial service transmission stations and picked up by a public-owned reception set. Radio ads and commercials are usually broadcast along with popular programs of music. Interviews and even theatrical sponsored programs can be broadcast on the radio.

Advantages of radio advertising:

Radio advertising depends only on the words spoken. The listener does not require the same amount of attention and effort as required by other media and can hear the message while doing other things, and the human voice is the only communication mode. In the case of effective message delivery, the listener develops a mental image of the program or store or setting and gets involved in the situation. Such mental images can be much more effective than actual settings and performances.

ii. Low cost medium:

Radio is a low-cost advertising medium. You can only read pre-encrypted messages and announcers with a copy of the script. Also, the cost of airtime on the radio is very low. Due to the low cost of commercial development, the absolute cost of radio advertising is very low, and when that is the case with radio in a wide audience range it is one of the most cost effective ways to convey advertising messages to the target audience.

The wide audience reach is due to the fact that radio has easy accessibility across different social classes, different times of the day, different demographic groups, and different geographical locations. Suited for low absolute cost radio advertising to small budget advertisers. The relatively low radio advertising cost makes it one of the most efficient of all advertising media.

iii. Selectivity and flexibility:

Radio advertising also offers selectivity and flexibility. Selectivity is a large number of locations in various program formats and advertisers, so the message of strength ranges in different markets corresponds to local conditions.

You can also gain selectivity in terms of listener types by selecting the right programs, time zones, and stations. In today's scenario where mass marketing gives way to market segmentation and Regional Marketing, Radio is the most difficult way to reach out to an audience.

With regard to flexibility, the radio Association provides a large number of cm as well as find suitable goods for communication. Radio is timely in the sense that it allows immediate broadcast of news, events and special events as soon as it happens.

The same is possible with a special announcement about the product or promotion of the product. Therefore, due to its large listener base, selectivity, flexibility and low cost, radio gains momentum as an advertising medium and marketers plan discreetly for radio advertising as a tool of integrated marketing communication. Radio can be used to promote purchase promotion points or to promote event marketing.、

If you use the wireless line of the disadvantages of advertising media, the media planner will not use the Planning Product or Sales Promotion.

Disadvantages of radio:

Radio has some real weaknesses as an advertising medium. Like television, radio advertising is of a perishable nature. If the listener is not available during the broadcast, the message will disappear forever. The message requires repetition, adding to the cost and level of noise in the environment.

B. Less attention:

Even if there are listeners at the time of the broadcast, there may be a problem of paying attention to commercials. Most people get actively involved or attentive in listening to radio shows, as in most cases they provide background for some other activity otherwise, people may not really grasp the content of advertising messages that are also delivered during music numbers when they are listening to music.

C. Absence of visual image:

This is another important point of the shortcomings of radio advertising. Radio advertisers cannot describe the product, demonstrate the product, or use any kind of visual appeal or information to attract the viewer's attention. The fleeting nature of wireless messages and the lack of control over the part of the receiver that processes the information further restricts the range of creativity in radio advertising. Therefore, advertisers usually combine radio as a secondary medium to create a media plan for the product.

D. Audience fragmentation:

The increase in the number of radio stations has led to the fragmentation of the audience, so the number of viewers tuned to a particular station tends to be less. This means that in order to directly reach a larger audience base, advertisers need to buy airtime on a number of sites to provide the required coverage in the target market.

E. Cluttered environment:

Like other media, radio also faces the problem of confusion. There are two aspects of the clutter problem in radio advertising. One is the increasing number of brands using radio advertising to carry a deeper and wider message in the market. Second, the nature of radio advertising requires repetition, which further adds to the chaos of the radio environment. As a result, advertisers need to be more creative and adopt more repetition as a way to break out of confusion.

Both radio and television are the dominant forms of broadcast media that advertisers explore to the best of their use. Each role is a new form of Broadcast Media; brand communication interactive media has seen its growth in the last few years. The advent of interactive media has greatly changed the face of advertising.

Q11) What all features should effective add should contain?

A11) However an effective ad should possess the following features.

1. Maximum reach-advertising should be done through such a medium in such a way that it reaches the maximum number of people who could be potential customers at once.  Therefore, hoarding on national roads, or propaganda on Railway trains and public transport buses, is a good media for this purpose.

2. It should be economic–economic concerns are present in all kinds of business and advertising spending is no exception to the rules. The budget spent on advertising should prove economical with a wide spread message that generates good results in the form of more demand and sales. Optimal promotion is possible only with the economical use of the resources that mean it.

3. Attract customers-wording, phrases used, ideas to display products or services must catch the attention of the public and be able to attract as many customers as possible every time.  Unless this requirement is fulfilled you may not get translated into inquiries from people resulting in actual sales.

4. It should be able to convince people–one of the key objectives of advertising is to make people believe what you say or tell through advertising.  It tries a persuasive effect to generate anxiousness in the customer's mind to see the use of the product displayed by you through advertising, convincing success in bringing about its fine features. It should be able to convince people through statistics,or experience narrated by satisfied customers or some other information for its best features.

5. So that our customers always use for a better life style or a healthier life style.  It must emphasize care for the well-being of customers all the time.

6. It is necessary to trust, and advertising should be done about the truth of the product.  It should not create a wrong, irrelevant or completely different picture of the product in which it is in reality. It amounts to cheating or deceiving customers.  Unjustified customers who cannot find the goods until the mark as indicated in the ad can even drag the company to court for loss, and also for deceiving acts.

7. It must follow the standard advertising practice–it must be taken to see that advertising worries are appropriate in every respect, that does not cause social harm or bring consequences of any kind to the product or the explosion of emotions against the company or the way its propaganda.  It is necessary to follow the ethical standards established in the line.

Q12) What are the types of work in private sales?

A12) Types of work in private sales

Attention industrial psychologist Robert Mc Murry identified the main types of personal sales work:

These salespeople usually deal with customers who are not aware of the need for a service or product, so the salespeople have the most sophisticated sales skills.