Distribution channels: availability of products (time, place, quantity); movement of goods from manufacturer to retailer to consumer; distribution channels for different…
As mentioned in an earlier assignment, there are three main types of distribution channels. The first is the channel that goes from the producer, then to the wholesaler, then to the retailer or sells to the consumer. The second channel starts with the producer who sells straight to the retailer, who then sells to the consumer. The third channel goes directly from the producer to the consumer. Channels one and two are classed as indirect marketing channels, whereas channel three is a direct marketing channel as it goes straight from producer to consumer.…
This paper is intended to shine a light onto distribution channels, both direct and indirect, as well as, provide a better understanding of channel levels. It will also deal with the different channel organizations, including conventional, horizontal, vertical and multichannel marketing systems.…
A channel of distribution is the means by which a product reaches the customer. It is "any series of firms (or individuals) that participate in the flow of products from producer to final user or consumer (Perreault 2009)." A distribution channel may be short, as in a company selling a product or service directly to the customer. In contrast, a distribution channel may be much longer, involving distributers and retailers. The channel of distribution is incorporated into the "place" aspect of the marketing mix.…
We look at promotion more in Ch 8 & 9, wk 7 Evaluate the opportunities that the Internet makes available for varying these elements of the marketing mix. Distribution Channel Overview The element of the marketing mix that involves distributing products to customers in line with demand and minimising: Costs to company (Inventory, Transport, Storage) Costs to consumer (Time between purchase and fulfilment; Price of item) A distribution channel is a group of interdependent firms that work together to transfer products and information from the supplier to the consumer.…
This is an Overview of Distribution Channels, and our target market’s needs in distribution channels.…
A marketing channel is simply a path that flows from sellers to end-users (customers). Traditional brink and mortar marketing channels can include intermediaries such as manufacturers’ agents, wholesalers, and retailers. Members of a traditional distribution channel can be responsible for activities such as transportation, promoting, sorting, order processing, inventory management, insurance, and financing (Finch, 2012). All of these members of the distribution chain must be compensated for their services which not only diminish profits to producers, but it also can translate into higher cost for customers. Some of the benefits of this process are is that these middlemen or intermediaries are responsible for adding value to the goods being sold. This process can only be justified if it continues to add value that surpasses the value that the producer operating independently can.…
Distribution channels consist of a chain of business or intermediaries which form a process where the goods and services pass until it reaches the consumers. It includes: wholesalers, retailers, distributors and even the internet. These channels can be broken in two different way direct and indirect channels.…
4. A distribution channel includes distributors, wholesalers, retailers, and agents that display, sell, or deliver the physical product or service(s) to the buyer or user. True__X__ False____…
This paper gives an overview of distribution channels; Channel Levels such as: Direct vs. Indirect Channel Organizations such as Conventional Vertical, Horizontal and Multichannel Marketing Systems. It also, explains my target market needs at the Hershey Company. There is also a brief description of how many channel members the company needs and why they need them.…
Burgemeister, S. (2003). Marketing channel strategy for consumer goods. Grin Publishing. Retrieved September 8, 2012 from http://www.grin.com/consumer…
When a company is looking at promoting a new or existing product or service, the involvement of their marketing channel during the design of the promotional program is key component. According to the text Excellence in Business (Bovée, Thill, Mescon; p. 417-418), a market channel is the network of firms that work together to get goods and services from the producer to the customer.…
Distribution channels dictate who a company's customer will be and how they will get the product. The footwear companies must choose their channels carefully because they want to make the product available, yet remain true to their image and goals. Retailers account for the largest percentage of sales, so…
A distribution channel is the sequence of firms that sell, buy, or hold products as those products move from manufacturers and producers to end buyers (Russ & Kirkpatrick, pg.297). Every channel must have at least two members or levels. These levels are the producer or seller, and the user or buyer. There are also two different kinds of members that are known as middlemen, these middlemen are known as retailers and wholesalers. The distribution channel is and will remain a problematic marketing subfunction for most firms because of the built-in conflicts between manufacturer and reseller (Bonoma, pg.49). Manufacturers must work through these different channels to attain diverse markets to reach their ultimate goal; provide their customers with what they want, where they want it, and when they want it.…
In understanding marketing channels, it is important to know the reasons for the existence of channel structures. These structures typically called intermediaries because they stand between production on one side and consumption on the other. Intermediaries also known as an agent. Channels evolve through the need for specialized functions which can be performed more efficiently by agent. By breaking down a complex distribution task into smaller, simpler ones, and dividing them among agent who specialize in particular functions, there is likely to be greater efficiency in the overall distribution channel.…