Distribution Channels : A Distribution Channel Essay

=Channel distribution is the path that a product takes from the producer to the consumer and physical distribution is the actual movement of products that path.

Distribution channels are organized in several ways: conventional, vertical, horizontal and multichannel (Kern R. 2013). Some of these organizational methods are more structured than others. When a distribution channel deals with more than one independent producer, such as wholesalers and retailers, the channel is known as a conventional distribution channel. (Kern R. 2013) These channels are not normally known to be strong and typically don’t give the customer the quality of product that they deserve. In a vertical marketing system, the retailers, wholesalers and producers, join forces to create a unified front, promoting an individual product (Kern R. 2013). Vertical distribution channels are stronger than the conventional distribution channels because all of the companies involved carry some of the load of power. (Kern R. 2013) In a horizontal distribution channel, companies join up and combine all of their finances and resources, in order to take on more than one company or product (Kern R. 2013). A multichannel distribution channel is where a large corporation uses two or more marketing channels to better target their desired customer segments (Kern R.

Different retailing businesses have very different distribution methods based on the types of product that they sell, some arguably more effectively than others.

Selective distribution is a type of retailing that is used by Nordstrom. The company examines each possible site for a new department store prior to building in that area. This type of retailing helps them to keep up the distinctive quality that they are popular for. According to the authors:

32. A channel of distribution is part of a broader network of relationships called a supply chain.

Place is also known as distribution channel. This is where customers can get products from, therefore internet marketing is considered as a distribution channel (i.e. Place) because customers can purchase product online as they do in stores.

Another component of an effective marketing plan is a distribution channel analysis. The path a product or service takes to reach the end consumer is referred to as a distribution channel, which can include wholesalers, retailers, distributors and the internet (Distribution Channel, 2013). A distribution channel analysis aids in the creation of a distribution strategy which will convey the company’s plan regarding the distribution of its products, determining whether to use a push or a pull strategy, and how that strategy fits the product, the target market, and overall marketing

To truly enjoy the understanding of such a large distribution channel I believe we need to start with the beginning of the process which is the suppliers. When it comes to purchasing power, no one is stronger than Walmart. With this purchasing power they are able to shape their suppliers the way they feel necessary. Walmart suppliers are required to use their just in time automation which ensures Walmart racks are always supplied but avoiding inventory. In the suppliers eyes, Walmart is a merchant that

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,

This task I am going explain the process of distributing goods through different channels from the manufacturer to the customers. The term distribution means the process of delivering, storing and selling goods, so that they can be used by customers. (Source- Intermediate Retail and Distribution, Delivering is about what types of transport which are used to carrying and delivering goods, the types of transport is going to be Rail, Road, Air, Water for example rivers, ocean cargo and canals and People. Storing is about where the goods are going to come from and where they are going to be stored. Selling is going to be where you are going to sell the goods

This has proved to be a very successful tactic for companies in marketing. Marketing channels are also used by companies to reach their consumers. They use three types of marketing channels which are communications, distribution and service channels. Communications is important to get the company's message out to the public and this could be in many forms such as the radio, television, the internet, posters and the like. They also need to distribute their products to the consumer and this means they will need a physical location like a store, or be a wholesaler and have others retail your products for you and also sell your products on the internet. Service channels are needed to effect transactions with the consumers and these could be banks for credit card purchases and transportation companies such as UPS to deliver the products to homes and businesses.

When we generate sales directly from our website we are able to make all of the money from our sales without the added cost of intermediaries. We chose to have a long channel for our primary distribution because each intermediary benefits our company. Getting our product into the hands of our customer would be extremely difficult without the help of our retailers. In order to supply our retailers all across Canada in a timely manner we need wholesalers in each province. Our wholesaler also breaks up our product into smaller quantities for our retailers such as convenience stores and gas stations who do not need as much on hand. (Tuckwell, 2013). Our wholesalers also carry an assortment of drugs and health food items which help our product make their way into new

Distribution strategies exist in three forms: exclusive distribution, selective distribution, and intensive distribution. Kotler and Keller (2009) define each of the distribution strategies as: exclusive distribution limits the number of intermediaries used; selective distribution depends on a limited number of intermediaries; and intensive distribution works with as many outlets as feasible. The distribution strategy of the airlines industry was not a part of its early history, but is now integral to the success of airline organizations.

Distribution: Specialized distributors that can increase awareness of target audience at a lower variable cost than generalist wholesaler; specialized stores are significant influencers of target customer’s behaviors

Marketing channels are the arrangement of intermediaries (wholesales, retailers, and the like) that the firm uses to achieve its marketing objectives. Is the problem discussed in Handy Andy’s marketing channels? Why or why not? Utilizing the factory distributor