Management and Organizational Studies 2320A/B Chapter 12: Chapter 12 Marketing Channels Distribution Strategy.docx
Document Summary
Distribution channels, supply chain, and logistics are related. Distribution channel: the institutions that transfer the ownership of and move goods from the point of production to the point of consumption. Wholesalers: those firms engaged in buying, taking title to, often storing, and physically handling goods in large quantities, and then reselling the goods (usually in smaller quantities) to retailers or industrial or business users. Logistics management: the integration of two or more activities for the purpose of planning, implementing, and controlling the efficient flow of raw materials, in-process inventory, and finished goods from the point of origin to the point of consumption. Distribution channels perform a variety of transactional, logistical, and facilitating functions. One important role played by intermediaries is to reduce the number of marketplace contacts, resulting in more efficient systems. One or more intermediaries work with manufacturers to provide goods and services to consumers (ford and coca cola (retailer)) and (cadbury, frito-lay (wholesaler and retailer))