CHAPTER ONE
1.0 INTRODUCTION
Since most commercial producer cannot sell directly to the final consumer without passing though the distributor or other marketing intermediaries. The reason for effective distribution process is aimed at getting the product from the manufacturer to the final consumer (Since the production cycle is complete when the product produce by a manufacturer get to the final consumer).
Additionally, the organization should identify contain factors before adopting the type of distribution process it will use for its product. It is known that every product seek to link together the set of marketing intermediaries that conform to the firm’s objective.
Here are some factors that must be considered by the firms before setting any distribution process and these factors are:
1. Financial capacity of the organization.
2. The type of competitive environment in which firm operate
3. The nature of their product
4. Geographical location of producer and its consumer.
The manufacturer must be able to analysis the reason of choosing one particular distribution process to the other.
1.1 STATEMENT OF THE PROBLEM
The following has been identified to be the statement of problem of this study.
1. To what extent would the distribution process adopted by the case study yield the desire result?
2. Will the cost of distribution have any effect on the profit margin of the organization?
1.2 OBJECTIVE OF THE STUDY
1. To find out the different types of distribution that is used by organization that involves in commercial activities.
2. To know how effective the distribution system used by the organization is meeting the demand of the consumer.
3. To know if the cost of distribution does not have any effect on the profit margin of the organization.
1.3 SIGNIFICANCE OF THE STUDY
Distribution as a means of getting finished product to the consumer is to paramount importance to the existence of any organization that deals with sales of goods and services.
Distribution also help the organization to break the bulk of the finished goods in the organization have been able to know what the final consumer feels about their product. If their response towards the product is good or bad.
The intermediary, in the chain of distribution simply fees contacts between producers and the consumers i.e. without the intermediaries the cost of bring the produce and the consumer together would be high.
