Wednesday, July 5, 2017

The Relationship between Market and Distribution

The Relationship between Market and Distribution

Distribution is an activity of delivering goods and services to a market from producers to consumers by a trading. Thus, the market has a relationship with the distribution. It can be examined in the following explanation.

Something, goods distribution takes place in a limited area or location surrounding the producers, or in an extend location. The extend area of distribution determines the types of the market.

The types of the market based on the large area of the distribution can be divided into three types. Those are goods characteristics, fluency transportation, and the number of the consumers and the spreading of it.

1 Goods Characteristics
Quick rotten goods can only be distributed to a certain areas while imperishable goods distribute to the larger area.

2 Fluency Transportation
Goods can be distributed to the larger areas if the fine transportation exists.

3. The Number of The Consumers and The Spreading of It.
Goods which are needed by country people will be distributed to all country areas. While goods which are needed only by people of a region will be distributed only in the region.

Based on three matters above, it can be examined that market can be categorized into four types, those are local market, regional market, national market, and international market.

1. Local Market
Local market is a market which covers a certain location. It usually lies in a residence or a village. The selling goods are consumption goods which are needed by surrounding people. For example, rice, fish, vegetables, and snack. Thus, local market is a concrete market or a real market.

2. Regional Market
Regional market is a market overwhelms a certain region. In the regional market the middle traders serve retails traders. The selling goods are mostly consumption goods which is as industrial products. FOr examples, soaps, toothbrushes, tea, cogge, cigarettes, snacks, and shoes. Regional market is included as a concrete market. For example, Pasar Johar, Pasar Beringharjo, Pasar Gedhe, Pasar Kliwon, Pasar Kembang, Pasar Bintoro, Pasar Baru, Pasar Besar, and Pasar Atas.

3. National Market
National market is a market that sells consumer goods to all part of a country. The selling goods are the consumption goods, the resources of production, the letter of value (stock), and the foreign currency. The national market tends to a concrete market and an abstract market.

The example of the abstract market is the capital market, the stock exchange, the currency exchange, and the raw-materials market. The outstanding abstract market are BEI.

4. International Market
International market is a market which sells consumer goods from all over the world. The selling goods consist of raw materials and minerals,

International market is an abstract market. For example, rubber market in New York (USA), tobacco market in Bremen (Germany), coffee market in Sao Paulo (Brasil), and petroleum market in Middle-East countries.

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