Abstract

Distribution is related to the set of actions that are carried out from the moment a product is made by the manufacturer until it is purchased by the final consumer. The objective of distribution is to guarantee the arrival of a product or to the customer. Distribution is one of the factors or variables of the marketing mix, also known as the marketing mix. It is integrated into the so-called 'Four P's' of classic marketing along with product, price and promotion.

The concept of distribution is very important to guarantee the sales of a product, since it is not enough to have a quality item at a competitive price. It also needs to be accessible to users. Hence, the product has to be placed in authorized points of sale.

TYPES OF CHANNELS

-Own or direct channel: the manufacturing company itself is in charge of getting its product to the end customer without intermediaries. Therefore, it does not delegate storage, transportation or customer service processes. For example, the HP product company handles the distribution of its own products.

-External or external channel: distribution and commercialization is carried out by companies other than the production company. The distribution process is the business itself, leading to the emergence of intermediary agents.

Depending on the number of participants, three types of external distribution are distinguished:

1. Short: the product goes from the manufacturer to the retailer or retailer, and from the latter to the end customer. It is typical of electronic commerce, in which the ecommerce platform connects producers and consumers in an agile and simple way.

2. Length: the product travels from the manufacturer's hands to the wholesaler, from the wholesaler to the retailer, to the consumer. This type of distribution is the most common and is typical of small businesses and traditional neighborhood stores.

3. Double: is one in which, in addition to wholesalers and retailers, a third distributor agent or exclusive agent also participates in the commercialization of products. It belongs to franchises or travel agencies.