CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

The aim of marketing as a set of individual and organizational activities is to ensure that consumer wants, needs and preferences are appropriately and properly satisfied in order toensure customer/consumer satisfaction and at the same time achieve the goals of the individual or organization. Marketing ensures that goods and services are not only produced, but also ensure that these goods are made available to the consumers at the right time, place and in the right quality.

The goal of marketing is achieved through the marketing mix elements - Product, Price, Promotion, and Place (distribution). Marketing ensures that these marketing mix elements combined in the right proportion, at the right time, and in the right sequence in order to meet the requirement of the target market.

Distribution which is one of the marketing mix elements is the subject of this study. The major aim of distribution is to ensure that goods and services move from the points of production to the points of consumption. This involves not only the physical movement and handling of products, but also the transfer of title as well. It is important to point out that distribution is a broad concept.

Agbonifor et al (1998), defined distribution as ''the flow of title to goods and the movement of those goods from point of production to the point of consumption."

Kotler (2008) defined distribution as "involving tasks of planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirement at a profit." He stated further that distribution as a resource in marketing is used to make the product available at the right place and in the amount that the target group wants it.  Without distribution systems, organizations would expend more of their funds or trying to build their own infrastructure for reaching customers.

It is necessary to mention that distribution is made of two broad aspects namely; channel of distribution often referred to as marketing channel or trade channel, and physical distribution (logistics). A definition of physical distribution is same as earlier stated according to Kotler. Channel of distribution refers to the pathway or course taken in the transfer of title to a product as well as the individuals and institutions that participate in the distribution of goods from points of production to the point of consumption.

Firms adopt different distribution strategies in the marketing of their products. They may use exclusive, intensive, or selective strategy. It should be noted that the strategy selected depends on the firm and the nature of its products.

In the past, physical distribution typically started with products at the plant and then tried to find low-cost solutions to get them to the customers. However, today's marketers prefer customer-centered logistics thinking, which starts with the market place and works backward to the factory, or even to source of supply. Therefore, as the world market is becoming more and more competitive, a firm that wants to be successful must carefully plan its distribution policy to ensure that goods not only are available, but are able to set to the right customers at the right time and place, and at the right quantity and quality.

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