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:
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).