DISTRIBUTION CHANNELS OF MAJOR CONSTRUCTION MATERIALS

Abstract

Distribution is an important element of marketing mix which enables product to reach through distribution channels from the producer to the final consumer. Distribution channels consist from all companies involved in that process including producer, wholesale, retail, insurance companies, transport companies, banks, warehouses and key accounts, particularly those from industrial markets.
The purpose of this paper is to point out the specifics of distribution channels of major construction materials such as cement, roof tile, and bricks. Selection of the specific distribution channel significantly affects the costs, sales figures and the other elements of marketing mix. This is very important in distribution of construction materials due to the high share of transportation cost in final price and limitations based on geographical position of the producer.
The choice of appropriate distribution channel for each product is a very complex process. Final decision on the selection of distribution channels combines ideal and available distribution channels and is related to the objectives set for particular market by the company. Often companies have to accept existing conditions on the market which limits their choice in selecting distribution channel.
Practical part of this paper will cover members of main distribution channels for constructional materials which are industrial customers, resellers - retail, wholesale and government acquisitions.

Key words: distribution, construction materials, marketing-mix, retail, wholesale