Distribution decisions answer a practical question: How will the product reach the customer?
Even the best product fails if it is not available at the right place and right time. Marketing channels connect the producer and final consumer by performing important functions such as:
This topic is often asked in exams as: “Explain channels of distribution”, “Functions of wholesaler/retailer”, and “Logistics/physical distribution”.
A channel is both a path and a system of institutions performing marketing functions.
Channels help by:
Common channel functions:
Exam tip: write 6–7 functions with short explanations.
Channels can be described by the number of intermediaries:
Note: The choice depends on product type, market size and company resources.
Key factors:
Exam tip: write headings and give 1 example.
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Channel members perform important functions. Any three are:
Other functions include promotion, negotiation, ordering and market information collection.
Channel levels depend on number of intermediaries:
Choice depends on product, market size and company resources.
Marketing management is “planning, organising, controlling and implementing of marketing programmes, policies, strategies and tactics designed to create and satisfy the demand for the firms' product offerings or services as a means of generating an acceptable profit.”
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Distribution decisions answer a practical question: How will the product reach the customer?
Even the best product fails if it is not available at the right place and right time. Marketing channels connect the producer and final consumer by performing important functions such as:
This topic is often asked in exams as: “Explain channels of distribution”, “Functions of wholesaler/retailer”, and “Logistics/physical distribution”.
A channel is both a path and a system of institutions performing marketing functions.
Channels help by:
Common channel functions:
Exam tip: write 6–7 functions with short explanations.
Channels can be described by the number of intermediaries:
Note: The choice depends on product type, market size and company resources.
Key factors:
Exam tip: write headings and give 1 example.
Wholesaler sells goods in bulk to retailers or business buyers.
Functions:
Retailer sells goods directly to the final consumer.
Retailing is the last point of contact with consumer; it strongly impacts brand experience.
Channel conflict occurs when channel members’ goals clash.
Management methods:
Logistics refers to planning, implementing and controlling the efficient flow and storage of goods from origin to consumption.
Physical distribution includes:
Objective: deliver the right product, at the right place, in the right condition, at the right time, at minimum cost.
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Channels of distribution are the routes through which goods move from producer to consumer, involving intermediaries like agents, wholesalers and retailers.
Types/levels of channels:
Importance of channels (exam points):
Thus, channels are essential for efficient marketing and customer satisfaction.