Important Concepts in Distribution

Another element of the marketing mix is ​​the place or also called distribution channels. Most producers do not directly sell products to consumers. They use an intermediary. The reason behind the use of intermediaries, namely:
- Many manufacturers lack the financial resources to carry out direct marketing.
- In some cases direct marketing is not feasible.
- Manufacturers sometimes often get a greater return on the products sold themselves.
Distribution is part of the marketing exchange process and involves physical movement of goods and services from producers to consumers and involve intermediaries who have an important role in the chain of channels. Through distribution activities, will be interwoven ties between suppliers, intermediaries, and customers.

Distribution Channels
The term marketing channel (channel) is derived from the Latin meaning canal channel. Formally marketing channel or channels of distribution is a series of structures of interdependent organizations that reach from the starting point of a product to the customer with the goal of moving the product.
There are some basic decisions in distribution channels such as, whether the manufacturer will use the distribution channels, directly or indirectly, use one or many channels, types of intermediaries that will be used, the number of intermediaries at each level, and the selection of intermediary companies to avoid conflicts between channels, such as inter- local distributor.
Distribution control strategy
The company implemented two strategies namely distribution strategy and the push-pull strategy to enhance economic strength and enhance better cooperation from channel members.

Pull Strategy
Strategy drag or pull strategy is a strategy undertaken by the company to attract the end consumer. This strategy can also be related to the campaign when the company's main focus is to build selective demand and brand loyalty by potential customers is done through media advertisements. In connection with the distribution of a simple example for instance, a clothing advertisement in print media (magazines) of interest to consumers, so encourage them to buy it. Furthermore, consumers are looking for the product to wholesalers and distributors will buy from the manufacturer.

Push Strategy
Push push strategy or strategies undertaken by the company to the distributors to cooperate with other intermediaries to make sales to final customers. The company provides the motivation in the form of awards or rewards to distributors so that they make more sales and ultimately will increase the number of customers.