MKT 100 Lecture Notes - Lecture 22: Direct Market

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Yanina Chevtchouk

Document Summary

Delivering value to customer by moving product from producer to end user. 2 types of distribution: direct (consists of producer and final consumer with no intermediaries) indirect (producer, final customer and one level of intermediaries) Intermediaries add value and so distribution channel = value chain. Direct distribution producer - conumer: e. g. services like haircuts and products purcahsed directly from the manufacturer. Perishable service (cannot be stored), direct channel makes sense. Direct channel can be used for an expensive product, technically complicated, expertise reside with producer, purchased infrequently and there is no additional value that an intermediary may be able to provide. Retailer channel: used by large retailers who buy directly from manufacturers bc of the volume. Retailer may neogtiate with manufacturer to provide some services that intermediaries provide like storage and delivery. (e. g. walmart) (thousands of retail store, buys in bulk) --> indirect chain. Dealer or retailer provides value added servies that manufacturers can"t provide (showroom, sales people, service).