Distributive trade is a possible channel by which goods are being moved from the places of production to final consumer, as there are several channels of distribution
Process of Distribution
Process of Distribution are activities and processes by which the goods manufactured are made available to consumers that actually need them as this goods can be transported by rail, road or even by air to their respective destinations. Thus, transport plays a very important role in the distribution process.
The availability of a particular product would be made known to the consumer through the process of advertisement. The way and method of packaging is also very essential, warehousing of goods makes it greatly easier and convenient for the manufacturers to enjoy the advantage of central distribution. The Process of Distribution can be explained below:
1. Merchandising: It involves the buying and selling of goods or products as it provides a very good avenue for easy exchange of goods and services. It allows for human satisfaction and a better standard of living through providing necessities, which are shelter, clothing and food. The arrangement for purchase is usually made by the wholesalers and the retailers. They buy goods for reselling them.
2. Storage/Warehousing: Goods are sometimes produced or obtained by the wholesalers in anticipation of demand. It is also important to ensure that goods are in place where they are most needed and that they are available when they are wanted. Storage or Warehousing helps in ensuring these.
3. Packaging: It covers all activities in product planning that involve the development of a container and a graphic design of a product. It must be noted that package is an important part of a product. Labeling, Packaging and branding are inter-related. This is because label appears on the package and brand is on the label. It is essential to differentiate the product of one manufacturer from those of others.
4. Transportation: This is also an important element of distribution process as it is a basic requirement for effective distribution. Transportation involves the movement of goods to the wholesalers, retailers or consumers as it can be through air, land or sea.
5. Advertising: It has to do with creating awareness of a product to the consumers as it aims at making the existence of good known to the consumer. Absence of advertisement makes it impossible for many useful goods to be known.
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