According to Sitorus (1985:11) that shows the distribution means the distribution of goods from producers to the hands of the consumer society. Manufacturer means the person conducting the production. Meaning that consumers who use or use of goods / services and those who perform distribution activities are called distributors.
Distribution of economic activity that bridges the production and consumption activities. Thanks to the distribution of goods and services to consumers. Thus the use of goods and services can be further increased after consumption. From what you just described, it appears that the distribution share and improve usability by location (place utility) and by the time (time utility).
B. DISTRIBUTION FUNCTION
Distribution is needed by consumers to obtain goods produced by manufacturers, especially if its production considerably. You can view items that are not produced in your area but there are now to where you live. There are also activities that include the distribution function is divided broadly into two.
a. Principal Distribution Function
The definition of basic functions are the tasks that will inevitably have to be implemented. In this case the principal function of the distribution include:
- Transportation (Transportation). In general, the place of production is different from residential consumers, the difference in this place must be addressed by transport activities. Along with the increase of population and the increasingly advanced technology, more and more human needs. This resulted in the goods supplied the greater, and thus require a means of transportation (freight).
- Sales (Selling) In the marketing of goods, there is always a selling activities performed by the manufacturer. The transfer of rights from the hands of producers to the consumers can do with sales. Given this activity so consumers can use the goods.
- Purchasing (Buying) Each sale means that there are no purchase activity. If the sale of goods made by the manufacturer, then the purchase is made by people who need the goods.
- Storage (Stooring) Before the goods supplied to consumers is usually stored in advance. In ensuring the sustainability, safety and integrity of the goods, the need for storage (warehousing). Example, you can see why we have parents who make rice?
- Standardization of Goods Quality Standards
- In each transaction, many sellers and buyers always want the provision of quality, type and size of goods to be traded. Hence the need for standardization of both the standard type, size, and quality of the goods to be traded. Standardization (standardization) of this stuff is so that the items to be marketed or distributed in line with expectations.
Distribution has an additional function which only applied in the distribution of certain goods. The additional functions which are as follows.
- Selecting This activity is usually required for the production and distribution of agricultural products collected from several employers. For example, tobacco production should be selected based on quality / standards of the regular force, the production of fruits were selected based on magnitude.
- Packing / Packing To avoid any damage or loss in the distribution, then the goods must be packaged properly. Eg fruits or vegetables, clothes, TV.
- Giving Information To give maximum satisfaction to consumers, manufacturers need to provide sufficient information to the local representative or to the consumer information it deems necessary. The most precise information can be through advertising.
C. DISTRIBUTION SYSTEM
Understanding the distribution system is setting the distribution of goods and services from producers to consumers. Distribution system can be divided into:
a. Distribution system or a direct short path
Is a distribution system that does not use the distribution channels. Examples of this system of distribution is the distribution of agricultural products by farmers to market directly.
b. Distribution system or indirectly a long way
Is a distribution system that uses the distribution channels of distribution activities is usually through an agent. Example: motorcycles, cars, TV.
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