FUNCTIONS OF DISTRIBUTION Lesson Note
Learning Objectives
This SS2 Marketing lesson note covers FUNCTIONS OF DISTRIBUTION for First Term, Week 4.
Lesson Note
Learning Objectives
By the end of the lesson, students should be able to:
Explain the functions of distribution.
Identify the advantages of distribution.
Identify the disadvantages of distribution.
A. Functions of Distribution
1. Transportation
Distribution involves moving goods from where they are produced to where they are needed.
Example: Moving bags of rice from a factory to shops.
2. Storage
Goods are kept safely until they are needed by consumers.
Example: A wholesaler keeps cartons of drinks in a warehouse before selling them.
3. Buying and Selling
Distributors buy goods from producers and sell them to retailers or consumers.
4. Financing
Distributors may provide money for buying, storing and transporting goods.
5. Risk Bearing
Distributors may bear risks such as theft, damage, spoilage or changes in prices.
6. Breaking Bulk
Large quantities of goods bought from producers are divided into smaller quantities for retailers and consumers.
Example: A wholesaler buys 100 bags of rice and sells them in smaller quantities to retailers.
7. Providing Information
Distributors provide information about products, prices and customers to producers and other buyers.
Advantages of Distribution
It makes goods available to consumers.
It helps goods reach different locations.
It saves producers the stress of selling directly to every customer.
It helps producers reach more customers.
It creates employment opportunities for distributors.
It helps to reduce the difficulty of storing and transporting goods for producers.
Disadvantages of Distribution
It can increase the price of goods because distributors add their profit.
Goods may be damaged during transportation.
Goods may become spoiled when they are stored for too long.
There may be delays in getting goods to consumers.
Some distributors may hoard goods to increase prices.
Too many middlemen can make the distribution process expensive.
Summary
Distribution is an important part of marketing because it helps products move from the producer to the final consumer.Its major functions include transportation, storage, buying and selling, financing, risk bearing, breaking bulk and providing information.
Evaluation
OBJECTIVE QUESTIONS
Distribution is the process of moving goods from the ________ to the final consumer. A. producer B. government C. bank D. school
Which of the following is a major function of distribution? A. Transportation B. Teaching C. Manufacturing D. Banking
Transportation in distribution involves ________. A. moving goods from one place to another B. producing goods C. advertising goods D. fixing prices
Warehousing helps to ________. A. store goods until they are needed B. destroy goods C. manufacture goods D. advertise products
Which function of distribution makes goods available at the right place? A. Transportation B. Production C. Consumption D. Recruitment
Breaking goods into smaller quantities to meet customers’ needs is known as ________. A. bulk breaking B. advertising C. branding D. production
Which of the following is a function performed by wholesalers and retailers? A. Buying and selling goods B. Manufacturing raw materials C. Producing electricity D. Constructing roads
Financing as a function of distribution involves ________. A. providing money needed for the movement and sale of goods B. transporting passengers C. producing advertisements D. storing money in schools
Risk bearing in distribution means ________. A. accepting possible losses that may occur while handling goods B. avoiding all business activities C. producing goods without selling them D. refusing to transport goods
Which of the following is NOT a function of distribution? A. Transportation B. Warehousing C. Risk bearing D. Teaching students
Theory Questions
1a. What is distribution?
1b. State five functions of distribution.
1c. Explain transportation as a function of distribution.
2a. What is meant by storage?
2b. State four advantages of distribution.
2c. Mention two risks faced by distributors.
2d. Why is distribution important in marketing?