MKT-3050 Chapter Notes - Chapter 11: Us Airways, Walmart, Inventory Control
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Lecture notes: a channel of distribution consists of, at a minimum, a producer (or manufacturer/creator of a product or service), and a customer, this is the simplest for of distribution, called a direct channel. Indirect channels contain one or more channel intermediaries who facilitate the movement of goods between the producer and the consumer or end user. Agents, wholesalers, distributors, and retailers are all examples of channel intermediaries. Example: baker sells buns to a wholesaler that till in turn sell boxes to supermarkets and restaurants and then sell to consumers. Create efficiencies by reducing the number of transactions. Channels, consisting of two or more players, often can accomplish certain distribution functions more effectively and efficiently than can a single organization. Ask students to imagine a world in which there were no grocery stores. They would have to have to get milk directly from a dairy, bread from a bakery, and tomatoes and corn from a local farmer.
