The+Role+of+Distribution+(Place)

==Today, businesses operate on a worldwide stage. Large businesses often ave operations in many countries. Even the smallest businesses are often involved in international trade. They may purchase goods producted in other countries. Their products may be distributed to international customers.==

==The goal of marketing is to create satisfying exchanges between businesses and their customers. Good economic utility is key to a satisfying exchange. Economic utility is the need-and-want-satisfying power of a good or service. It includes the form of the product at the time of consumption, the time and place the customers can obtain it, and the ability of the customer to take possession. Taking possession includes the ability to afford the product. Improving economic utility increases the chances that a business can sell its product or service to prospective customers.==

==Distribution is almost totally responsible for time and place utility. It also is important to form and possession utility. Distribution includes the locations, organizations, and methods used to make the product available to customers. Distribution activities must be completed in a careful and timely manner. Otherwise, the product's form may not be of the same quality as when it was produced. Customers may not be able to purchase the product when needed. The product may be difficult to locate or expensive to ship. The cost of the product may increase to a point where the customer no longer considers it a value.==

== Many activities must be completed in order to distribute products and services to customers. A distribution channel includes organizations and individuals that physically move and transfer ownership of a product from producer to consumer. A distribution channel that involves only the producer and consumer is a direct channel. A distribution channel that involves additional businesses between the producer and consumer is called an indirect channel. With an indirect channel, businesses with expertise in an area of distribution are used to complete those activities. ==

== Developing an effective distribution channel is an important part of marketing. A business must determine when, where, and how customers would like the product to be available for purchase and use. It is important to learn if customers are willing to complete any distribution activities themselves in order to speed the process or reduct the cost. The company must perform the remaining activities or locate other businesses to participate in the distribution. No matter who performs an activity, it is the business's responsibility to ensure that distribution is effective and efficient. ==

DISTRIBUTION ACTIVITIES
==You walk into a store to purchase a new pair of shoes. You select a pair that was manufactured in Chile. How did the shoes get from Chile to the store? What businesses were involved? What activities were completed in the process? How will the money ou pay be divided among the participating businesses? Who will take responsibility if you have problems with the shoes? The answer to each of these questions represents an organization participating in a distribution acitivity.==

Channel Participants
==Organizations that participate in the distribution process are known as channel members. In addition to the producer and consumer, the most common chaneel members are retailers and wholesalers. Those companies participate in indirect channels. Retailers accumulate manufactured products and sell them to final consumers. Wholesalers support the distribution of products from manufacturers to retailers or other businesses.==

Channel members perform three types of activies - exchange, physical distribution, and information management.
==Exchange activities consist of purchasing and selling as well as providing customer support. Exchange activities include providing locations and procedures for product returns if customers are not satisfied with their purchases. Independent sales companies, purchasing cooperatives, and businesses specializing in customer service complete exchage activities in indirect channels.==

==Physical-distribution activities involve product handling. Typically, product handling requires temporary storage in a warehouse or distribution center. Orders are filled and transported to the next channel member or the final consumer. Trucking firms, small parcel shippers, railroads, shiplines, airlines, and pipelines move products around the world each day. Some channel members will packge products for storage and shipping. Products might range from small, fragile items to hazardous materials. Warehouses, distribution centers, and storage facilities hold products until needed.== ==Information-management activities helop to record, organize, transmit, store, and update the information needed to buy, sell, and distribute products. The activities include providing product information to customers, completing order forms, and maintaining inventory and shipping records. Receiving and processing payments and making information available to channel members are also important information-management activities. Many distribution channels includes businesses that specialize in order processing, data processing, and financial transactions management.==