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M 3.07. Distribution Channels. Distribution Channels. Intermediary: “middle man” # of Channels: the more common the item, the more channels involved Distribution intensity: the number of retailers in the channel Leads to ideal market exposure. Channel w/Wholesaler. PRODUCER. WHOLESALER.
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M 3.07 Distribution Channels
Distribution Channels • Intermediary: “middle man” • # of Channels: the more common the item, the more channels involved • Distribution intensity: the number of retailers in the channel • Leads to ideal market exposure
Channel w/Wholesaler PRODUCER WHOLESALER RETAILER CONSUMER
Channel w/Agent • Used when producer does not want responsibility for selling activities PRODUCER AGENT CONSUMER
Adding Value To Product • Perform channel activities expertly
Technology & Channel Mgt • Some businesses can distribute most/all of their products via Internet • Easier to monitor channel members’ activities • Can decrease the amount of intermediaries necessary
Global Positioning System • Allows companies to track movements of drivers & vehicles
Impact of Channel Mgt on Customer Service • Products in stock • Timeliness • Communicate effectively • Limit backorders
Distribution Patterns • Intensive: use all available outlets to saturate market • Selective: limited outlets in area • Exclusive: allows producer to maintain tight control over product