Distribution

Thursday, February 21, 2013

Distribution 
Distribution refers to the process of storing and moving products to customers, often through intermediaries such as wholesalers and retailers. 

Advertising 
It refers to publishing a product in order to create, maintain or expand its market. It is a written or visual presentation of the product. 

Purpose of Advertising 
The main purpose of advertising is to increase demand for the advertised product. It also helps the firm to; 
  1. give information to customers 
  2. create a goodwill 
  3. encourage and help intermediaries 

Advantages of Advertising 
  • It increases sales 
  • It stimulates production 
  • It increases employment opportunities 
  • It helps consumers 
  • It ensures better quality of goods 
  • It creates goodwill 

Types of Advertisement 

1.Persuasive Advertisement 
It encourages people to purchase a particular brand of products. It is aimed at capturing the market of its substitute products. Most advertisements are of this nature. Examples; Coca Cola, Dhiraagu, Anchor Milk etc. 

2.Informative Advertisement 
It is designed to give information which is of benefit to the firm, consumers or the government. Examples; Availability of Sugar from a shop, Changes in income tax rates, the danger of smoking cigarettes etc. 

Media of Advertisement 

1. Television 
  • It is the most effective media of advertising 
  • It shows both message and pictures 
  • It reaches several million people 
  • It is very expensive 

2. Radio 
  • It entertain people through music, dialogue, songs and interviews 
  • It reaches most homes in the country 
  • It is less expensive 
  • It gives only sound 

3. News papers and Magazines 
  • It is less expensive 
  • Advertisement can be kept by the reader for future reference 
  • It is not suitable for timely advertisements 

4. Posters, painted displays and electric signs 
  • It is very effective when located in a suitable place 
  • It is relatively cheap 
  • It is powerful enough to stimulate immediate action 

5. Circulars 
  • It is a document which circulates the advertisement 
  • It reaches several hands 
  • It can be kept for future reference 

6. Exhibition 
  • It brings immediate effect 
  • It is relatively cheap 

7. Own fleet displays 
  • It is a free advertisement 
  • It moves and reaches several customers 
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