MKTG 2030 Chapter Notes -Mail Order, Order Processing, Outsourcing
Document Summary
Channel distribution is a series of firms or individuals that facilitates the movement of a product from the producer to the final customer. These channels include an organized network of manufacturers, wholesalers and retailers that develop relationships and work together to make products conveniently available to buyers. A channel of distribution consists of, at a minimum, a producer and a customer and this form of channel is known as a direct channel. Channels are often indirect because they include one or more channel intermediaries, firms or individuals such as wholesalers, agents, brokers and retailers that in some way help moves the product to the consumer or end user. The first step in deciding on a distribution plan is to develop appropriate objectives that support the organizations overall marketing goals. The overall objective of any distribution planning is to make firms products available when, where and in the quantities customers want and need at a minimum cost.
