BUS 1201 Lecture Notes - Lecture 14: Sales Promotion, Press Release, Order Processing
Document Summary
A distribution channel or marketing channel is a system for conveying goods or service from producers to consumers. Intermediaries are the people or firms that move products between producers and customers. Agents and brokers are specialists who bring buyers and sellers together and help negotiate a transaction. Wholesalers (middlemen) are intermediaries who sell products 1) to other businesses for resale to customers or 2) to institutions and business for use in their operations. Retailers are intermediaries who sell products directly to customers. Value added by intermediaries: form utility-changing raw materials into useful products, location utility-making products available where convenient, time utility-making products available when convenient. Information utility-providing helpful information: ownership-helping customers acquire products, service utility-providing helpful service. A distribution strategy is the overall plan for moving products from producer to consumers. Intensive distribution strategy-the product is distributed among as many locations as possible. Selective distribution strategy-the product is distributed in preferred locations where it will get special attention.
