Distribution Channel by yaosaigeng

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									Distribution Channels
BDI3C


                        1
     What is a Distribution Channel?

A set of interdependent
                                The paths of
organizations
                                ownership that
(intermediaries)            O   goods follow as they
involved in the process     R
                                pass from the
of making a product or
                                producer to the
service available for use
                                consumer.
or consumption by the
consumer or business
user.
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                 Number of Channel Levels
  Channel Level - Each Layer of Marketing Intermediaries that Perform Some
  Work in Bringing the Product and its Ownership Closer to the Final Buyer.

  0-level channel – Direct
 Producer                                                      Consumer

  1-level channel
 Producer                                       Retailer      Consumer

  2-level channel
Producer       Wholesaler                      Retailer      Consumer

  3-level channel
Producer       Wholesaler      Jobber        Retailer      Consumer

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Why are Marketing Intermediaries Used?

 Intermediaries  are used when they are
  more efficient in making goods available
  to target markets.
 Intermediaries offer the firm more than it
  can achieve on it’s own through:
   Contacts,
   Experience,
   Specialization,
   Scale   of operation.
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                Distribution Options

   Move customers to the service
     Store front
     Party method


   Move service to delivery system to customers
       Catering cooked on location

   Deliver tangible element of service to customers
       Pizza delivery

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                 Distribution Options

   Pick-up things on which service is to be
    performed
       Valet service in hotels

   Operate at arm’s length
       mail, telephone, Internet, vending machines




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