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The main function of a distribution is to provide a link between production and consumption. Organizations that form any particular distribution perform many key functions: |
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Information |
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Gathering and distributing market research and intelligence - important for marketing planning: |
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Promotion |
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Developing and spreading communications about offers |
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Contact |
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Finding and communicating with prospective buyers |
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Matching |
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Adjusting the offer to fit a buyer's needs, including grading, assembling and packaging |
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Negotiation |
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Reaching agreement on price and other terms of the offer |
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Physical distribution |
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Transporting and storing goods |
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Financing |
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Acquiring and using funds to cover the costs of the distribution |
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Risk taking |
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Assuming some commercial risks by operating the distribution (e.g. holding stock) |
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All of the above functions need to be undertaken in any market. The question is - who performs them and how many levels there need to be in the distribution in order to make it cost effective? We at Malixi Marketing will help you making it all happen. |
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