Elements of Marketing Mix 3 Physical Distribution Video Lecture | Business Studies (BST) Class 12 - Commerce

now coming to the third element of the
marketing mix that is a physical
distribution right like as we discussed
before also that the customers for any
product they are scattered over a wide
geographical area so it is humanly
impossible for the manufacturer to go up
to each and every customer and sell his
product right that is where the
distribution channels they come into the
picture so they make it possible that
the product is made available to the
customer at the right time a gorgeous
time per product I use type in the
Himalayas so it loses its charm it loses
its a to to reduce graphic Wi-Fi the
name if I am in pain if I do not get the
medicine at the right time I get a two
days later its of no use then right so
just in order to make sure that the
customer gets the product at the time
when he needs it at the right time right
the channels of distribution have come
into the picture so as to make the
product available wherever demand exists
for the same right now it is convenient
right it is practically feasible for a
manufacturer to reach customers spread
over a wide geographical area only with
the help of the different distribution
channels right now see the deal is
basically between the manufacturer and
the customer right and people who help
to affect the sale of a product they are
called as middlemen or they are called
as your intermediaries the middle many
manufacturers the product like a
customer code attain right or jitan a
intermediaries customer or manufacturer
k-beach my author John J price of the
product tonight Berta Jacob because each
intermediary is going to keep his profit
margin right now there are different
channels of distribution there are
different levels of channels right
basically broadly hum neon go to make a
tagger eyes clear one is your zero level
channel or a direct channel wherein
there is no intermediary the
manufacturer sells the product directly
to the customer right now this is the
case there you can take a perfect
example of Eureka Forbes fine they used
to sell their vacuum cleaners also by
direct selling where indirectly company
jothee customers are contact not see
right now their water purifiers also the
cell by the meaning of direct channel
where is no intermediary is involved
right indirect channel is a channel
wherein in between the manufacturer and
the customers there comes an
intermediary right now there are
different levels here also number one
there is a one level channel there is a
one level channel where in you have
manufacturer manufacturer is a are they
retailer capaz or retailer say are they
a customer capaz these are generally for
the products for example cars TK you
have the dealers called showrooms open
hoon educators are the showrooms SRA for
equity company k showrooms I so these
are your retailers ticket in
distributors K pass RK dealers que pasar
Kamla Marie Curie Thea this is your one
level channel this is your one level
channel then second is your two level
channel where in you have manufacturer
you have wholesaler retailer and then
customer you sorry RK fast-moving
consumer goods in TK towel sale a case
soaps detergents your rice sugar all the
FMC G's fine they are supplied with they
are distributed or made available with
the help of the two level channel right
manufacturer sells it to the wholesalers
they buy it in bulk from the
manufacturer and retailer buys the
product from the wholesaler and
relatively smaller quantities and
customer finally buys the product from
the retailer right third and the last
one is your three level channel wherein
manufacturer is not able to come in
direct contact with the wholesaler TK so
there comes an agent you have area wise
distributors you have area wise
distributors North Zone garlic
distributors South color is called a
vest color then these distributors they
get in touch with the wholesalers fine
and then from wholesaler to retailer and
from the retailer to the customer this
is generally undertaken when
manufacturer cannot directly approach
the wholesaler clear there are area wise
distributors and manufacturers gets in
touch with the distributors you look for
distributor for your product and
distributor apne Apogee wholesalers we
pass a clear now
these are the different channels but how
does one decide
that what channel should I go in for
right there are certain factors which
determine the choice of the channel on
the basis of market market related
factors number one coming to the nature
of the market now in in consumer market
right in a consumer market where in
consumer market meaning Apogee consumer
durables with them in consumer market
distribution channels are generally used
distribution channels as an one level
two level or three level right but in
case of your industrial market in case
of industrial goods where in which
involve lot of technicalities and all
which have to be explained to the user
their direct channel is used no
intermediaries use direct channel mostly
direct channel is used then coming to
the size of the market now if the number
of the customers is large and spread
over a wide geographical area then
distribution channels will come into the
picture but if the size of the market
size of your target market is very very
small then in that case either a one
level channel can be used or else we can
go in for a zero level channel that is a
direct channel then based upon
geographical concentration agar Sarek is
our customers a cage agape concentrated
here right in that case I can go in for
a direct channel I can go in for a
direct channel or I can go in for a one
never Channel right then coming to the
product related factors okay now what is
a unit value of the product unit value
meaning price of the product now if it
is a very very expensive product in that
case Direct Selling is preferred in that
case Direct Selling is different because
already the product is so expensive
Yusuke by the gram number of channels
increase causing a eight to miss
handling okay product II Dussehra high
level pay or hunka profit margin arooga
it will make the product either even
more expensive so when the unit value of
the product is very low distribution
channels are used but if the unit value
of the product is very high then
generally we prefer direct selling then
product complexity if the product is too
complex
you