Preview

Distribution Channels

Best Essays
Open Document
Open Document
2922 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Distribution Channels
.

DISTRIBUTION CHANNELS
BIBLIOGRAPHIC REVIEW
António Abílio da Silva Couto, nº 5195 Cidália Martins Domingues, nº 5115 Joaquim Luís Sousa Pereira, nº 5194 Paula Marisa da Silva Lima Ferreira, nº 5100 Paulo José Branco, nº 5198

This work was oriented by Dr. Francisco Coelho
ABSTRACT: Deciding for a distribution channel is probably one of the most important actions a marketer has to take in his career. In this work we identified the main distribution channels, the external factors that should be taken in consideration when choosing the channel, a brief overview of their evolution and some of the problems that may arise.

SCHOOL OF PORTO, NOVEMBER 2012

CONTENTS
CONTENTS .............................................................................................. 2 1. 2. INTRODUCTION .............................................................................. 3 DISTRIBUTION CHANNELS ........................................................... 4 2.1. KINDS OF MARKETING CHANNELS ........................................... 4 2.2. MAIN DISTRIBUTION CHANNELS ............................................... 5 3. DECIDING FOR THE RIGHT CHANNEL ......................................... 6 3.1. CUSTOMER CHARACTERISTICS ............................................... 6 3.2. NATURE OF PRODUCT ............................................................... 6 3.3. NATURE OF DEMAND/LOCATION .............................................. 7 3.4. COMPETITION ............................................................................. 7 3.5. LEGAL REGULATIONS/LOCAL BUSINESS PRACTICES ........... 8 4. 5. CHANNELS ARE IN CONSTANT EVOLUTION .............................. 9 SOME PROBLEMS MAY ARISE ................................................... 10 5.1. THE INTERNET CONFLICT ....................................................... 10 5.2. GREY MARKETING .................................................................... 10 5.3. LOSS OF BARGAINING POWER

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Unit 29 Task 2 guidance

    • 372 Words
    • 2 Pages

    Distribution channels: availability of products (time, place, quantity); movement of goods from manufacturer to retailer to consumer; distribution channels for different…

    • 372 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    M2 Unit 29

    • 1506 Words
    • 4 Pages

    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.…

    • 1506 Words
    • 4 Pages
    Good Essays
  • Good Essays

    mktg 205 unit 3 project

    • 962 Words
    • 4 Pages

    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.…

    • 962 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    AMB335 Wk 6 Lecture 1

    • 1603 Words
    • 9 Pages

    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.…

    • 1603 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    I n this paper I will give an overview of distribution channels. Channel Levels: Direct versus Indirect Distribution. Channel Organizations: Conventional, Vertical, Horizontal and Multichannel Marketing Systems. I will analyze my target market 's needs. Explain what I know about my target market and what they want from a channel of distribution.…

    • 488 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Budget Analyst

    • 1404 Words
    • 6 Pages

    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.…

    • 1404 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Cited: Fontelera, J. (2013). Distribution Channels and Marketing Analysis. Retrieved from Chron: Small Business Web site: http://smallbusiness.chron.com/distribution-channels-marketing-analysis-60985.html…

    • 1248 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Q. Apply at least two theories or ideas to a media text or genre: The Shawshank redemption – Vladimir Propp's narative theory relates to this movie. In every narrative there are always certain people that play certain roles and the theory is correct in it's assessment when compared to this film. Beginning with the hero – this character leads the whole narrative and is usually looking for or trying to achieve something. In this case it is male who is also the main character being Andy Dufresne, or Tim Robbins. He is up for trial for a double murder.…

    • 1709 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Marketing Channels

    • 991 Words
    • 3 Pages

    1. Independent Beauty Consultant should have the Physical possession to be able to start her business in the right track to be in touch with all the company channels.…

    • 991 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Prof. Rafael Mateus Barreto – Unisantos – rafael.barreto@dhl.com Rua Dr. Carvalho de Mendonça 144 – Santos – 55 – 13-97408776…

    • 6463 Words
    • 26 Pages
    Powerful Essays
  • Powerful Essays

    Marketing Channels

    • 3270 Words
    • 14 Pages

    Question 3: "Suppliers should not deal with intermediaries who are more powerful than they are". Debate this statement.…

    • 3270 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Ramly Burger

    • 4493 Words
    • 18 Pages

    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.…

    • 4493 Words
    • 18 Pages
    Good Essays
  • Satisfactory Essays

    Channels of Distribution

    • 866 Words
    • 4 Pages

    Faced with budget constraints and higher food and fuel prices, many shoppers are trimming basket size to save money while making more frequent trips to nearby drug, dollar and grocery stores, according to new analysis from SymphonyIRI Group. In turn, drug and dollar retailers have boosted their food and beverage offerings, while many grocers are rounding out their personal care product lines. “This increased channel blurring is the result of a highly competitive CPG marketplace,” says Mark Mark Parise, president of IRI Parise, president of IRI, a business unit of SymphonyIRI. “CPG marketers understand that consumers are seeking low-cost solutions to everyday needs, and they are acting to capitalize on that opportunity.” In their quest for value, consumers increasingly are willing to shop at a variety of channels to find the products they want at prices they can afford. With 55 percent of consumers eating out less often than prior to the recession, grocery retailers have stepped up their merchandising of convenient prepared foods while updating store formats to attract more consumers. Across channels, two-thirds of CPG categories have enjoyed increased merchandising support during the past year. At the same time, supercenters are enhancing their product assortments after attempts to scale back the number of SKUs resulted in some customers shopping elsewhere. “Winning in CPG today is about getting the right products to the right place at the right time,” says Parise. “In other words, retailers must understand and deliver against the needs of key shoppers. A broad assortment, one-size-fits-all approach is simply not effective.”…

    • 866 Words
    • 4 Pages
    Satisfactory Essays
  • Better Essays

    Distribution Channel

    • 1490 Words
    • 6 Pages

    Tourism distribution channel is a system of intermediaries or middleman that facilitates the sale and delivery of tourism services from suppliers to consumers (Buhalis and Law, 2001). Distribution channels can serve as part of the marketing mix that can makes the products available to consumers as the link between suppliers of tourism products and their end consumers, as well as the bridge between supply and demand (Kracht and Wang, 2010). This shows that, important to have a good distribution channel strategies to ensure information of the destination will be distribute aggressively.…

    • 1490 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Distribution Channel

    • 527 Words
    • 3 Pages

    products and the ‘staff’ element is reflected in the ‘people’ element. In this study, the marketing mix will be considered as including: product, price, place,…

    • 527 Words
    • 3 Pages
    Good Essays

Related Topics