Distribution Channels
Distribution Channels
Distribution Channels
DISTRIBUTION CHANNEL
DISTRIBUTION CHANNELS OR MARKETING
INTERMEDIARIES
• IS A SET OF INTERDEPENDENT ORGANIZATIONS THAT HELP MAKE PRODUCTS AVAILABLE
FOR USE OR CONSUMPTION BY THE FINAL CONSUMERS.
• IMAGINE THIS: IF THE MANUFACTURER SELL ITS PRODUCT DIRECTLY TO CUSTOMERS, IT
WILL HAVE TO DEAL WITH EACH CUSTOMER INDIVIDUALLY, INCREASING ITS CONTACT
WITH CUSTOMERS. THE CUSTOMERS WILL ALSO HAVE TO GO TO DIFFERENT
MANUFACTURERS IN ORDER TO BUY THE GOODS THEY NEEDS
• ON THE OTHER HAND, BY EMPLOYING DISTRIBUTION CHANNELS OR MARKETING
INTERMEDIARIES, A MAANUFACTURER ONLY DEALS WITH ONE OR A FEW DISTRIBUTORS,
AND THE CUSSTOMERS CAN BUY THEIR FAVORITE ITEMS FRON ONE OR TWO STORES ONLY
DISTRIBUTION CHANNELS OR
INTERMEDIARIES THAT BENEFITS THE
MANUFACTURERS.
• INFORMATION PROVIDER
• PRODUCT PROMOTION
• PHYSICAL DISTRIBUTION
BENEFIT CUSTOMERS
• MATCHING DEMANDS AND SUPPLIES
• MERCHANDISING
• SALES PROMOTION
CHANNEL LEVELS
TYPES OF WHOLESALERS
A. MERCHANT WHOLSALERS
-FULL-SERVICE MERCHANT WHOLESALERS
-LIMITED –SERVICE WHOLESALERS
B. BROKER AND AGENTS
C. MANUFACTURERS’ AND RETAILERS’ BRANCHES AND OFFICES
DISTRIBUTION CHANNEL DECISIONS
• CHOOSING INTERMEDIARIES
• MOTIVATING INTERMEDIARIES
• INTERNATIONAAL DISTRIBUTION CHANNELS