Channels for distributing goods as a factor in the development of the circulation sphere

Keywords: Stream of Commerce Area, Commodity Resources, Distribution Channels, Retail and Wholesale Network, Logistics, Information Flow

Abstract

The article has substantiated the criterion system of channels for distributing commodity resources, as a complex of intermediary activity of the stream of commerce area. The classification of channels for distributing goods has been developed into direct, indirect and mixed depending on the priority of choice. The specificity of their activity has been determined. Wе claim that intermediaries, who perform the functions of both bringing the goods closer to the ultimate consumer and the corresponding ownership, are the channels for distributing commodity products. We also claim that the distribution channels of goods and the commodity flow system have different vectors of information flows, which are revealed through the correction retraction with the consumer. The article has substantiated the factors of influence on purchasing and marketing activity of the subjects of the retail network and intermediary structures, which is justified by the functional structure of sales management, as well as the system of analysis and control over the process of distribution and activity of the participants of distribution channels at the commodity market. The article has improved the system of implementing a specific variant of the logistics center’s placement, which should proceed from the criterion of optimality of the ratio between the expenses for guaranteeing the work of the warehouse economy and increase of the efficiency of servicing of enterprises and organizations of retail trade. It has been concluded in the result of the research that the achievement of an effective level of competitiveness of the subject is achieved by segmenting the market aimed at forming homogeneous groups according to certain criteria. This research has been proved that the formation of methods of stimulating sales through the provision of additional services for the supply of goods and the system of delaying payment for them has the crucial role within the pricing system. It has been noted that the effective indicators of the research in the field of studying distribution channels of commodity products is the analysis of the dynamics of sales and customers’ reactions to changes in the organization of the sales of goods area, where the motives for purchases, the relationship of changes in pricing policy and conditions of sale, the provision of additional services are analyzed.

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Author Biographies

Andrii Diadin, Kharkiv National University of Internal Affairs, 27, L. Landau avenue, Kharkiv, 61080, Ukraine

PhD (Economics),

Associate Professor of the Department of Social and Economic Disciplines

Serhii Tkachenko, Kharkiv National University of Internal Affairs, 27, L. Landau avenue, Kharkiv, 61080, Ukraine

PhD (Economics), Associate Professor, Head of the Department of Social and Economic Disciplines

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Published
2020-07-24
How to Cite
Diadin, A., & Tkachenko, S. (2020). Channels for distributing goods as a factor in the development of the circulation sphere. Social Economics, (59), 65-71. https://doi.org/10.26565/2524-2547-2020-59-08
Section
ENTREPRENEURSHIP