The Theoretical Framework of Distribution System and Distribution Channel Management

2) Explain the role of channel intermediaries in the product distribution process. Why is their role important?

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.

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.

vs. exclusive – Giving a limited number of dealers the exclusive right to distribute the

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

4. By expanding the distribution channel one single customer doesn’t dominates the market share, and limited distribution channels could affect company’s bottom line.

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

* Higher sales volume in wider location and hence higher profit (distributor require either high volume sales or high advertising, hence if tied up with any one distributor, the sales target might go high requiring the company to be more competitive)

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,

17. ___________ distribution consists of the manufacturer placing the goods or services in as many outlets as possible.

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.

Conducting an overall market analysis helps determine the target demographic and demand for your products, as well as your competitors and their distribution channels . Because Clear-Springs, Inc. wanted to maximize its profits, it operates strictly using E-Commerce. An online channel is disruptive to the traditional ways of marketing and distribution. Online selling

A distribution chain also known as value chain can be described as a set of interdependent organizations or businesses involved in making a product or service available, from producer to end customer (Kotler, et al., 2012).

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

Distribution of the products or services is a vital thing of the sales of the organization. What is the customer want about distribution; how they want get their product or services by research all these things will help to get customers.