Distribution channels in marketing are one of the classic “4 Ps” (product, promotion, price, placement a.k.a. “distribution”).They’re a key element in your entire marketing strategy — they help you expand your reach and grow revenue. B2B and B2C companies can sell through a single distribution channel or through multiple channels that may include Distribution Channels Business Plan However, such a situation is a rarity with us. With our custom essay offer, you can be sure to get any type of essay help you are looking for. At blogger.com, just tell us what you are looking for and our representative will provide you with the optimum and utmost dependable service you could have asked Sep 16, · In this article, we will look at 1) an introduction to the Channels building block, 2) channel phases, 3) channel types, 4) advantages and disadvantages of alternative channels of distribution, and 5) a case study. INTRODUCTION TO THE CHANNELS BUILDING BLOCK This building block in the business model canvas defines how an organization communicates with and provides value to its
Distribution Channels in Marketing | Marketing MO
Everything you need to business plan distribution channels about the types of distribution channels. Therefore, there are various forms of channel networks having different number and types of middleman. Channels can be long or short, single or multiple hybridand can achieve intensive, selective or exclusive distribution. The length of channel could have any number of intermediaries or be direct to customers.
Door-to-Door Sales 3. Sales by Mail Order Method 4. Sales by Opening Own Shops. One-Level Channel 2. Two-Level Channel 3. Three-Level Channel 4.
Four-Level Channel C. Hybrid Distribution Channel or Multi-Channel Distribution System. The channels of distribution, which are sometimes referred to as trade channels, may be broadly classified into two categories:. The producer can sell directly to his customers without the help of middlemen, such as wholesalers of retailers:. These channels take the shortest route to the consumer.
Certain goods, like the industrial machinery, are directly sold to the consumers. Costly goods like computers and luxury automobiles, are also directly sold. Some manufacturers open their own retail shops in many localities and sell goods directly to consumers. The best example is that of the Bata Shoe Company Shops. The manufacturers also try to sell through their own mail order departments. All these indicate that producers are now taking steps to approach the consumers directly, business plan distribution channels.
Though this is possible for some types of goods, the fact remains that the services of intermediaries, such as wholesalers and retailers, are often essential in the distribution of goods to consumers. i Producer-Consumer industrial goods with high technical content.
iii Producer—Wholesaler—Consumer most industrial products. iv Producer-Wholesaler-Retailer-Consumer most consumer goods. v Producer-Sole Agent -Wholesaler-Retailer-Consumer usually for a prescribed geographical area.
The first channel, from the producer to the consumer, is preferable when buyers are few and the goods are costly and mostly purchased by industrial users.
In this category fail such goods as complex machinery involving high technology, computers and luxury cars. In this case, buyers can be directly contacted and goods can be sold by direct personal approach. The second channel, from the producer-retailer to the consumers, business plan distribution channels, is preferable where the purchasers of goods are big retailers like department stores, chain stores, super markets or consumer co-operative stores. In these cases, the wholesalers may be by passed because the bulk of the goods are purchased by these large business plan distribution channels distributors to be sold to the consumers.
Goods like electrical appliances, fans, radios, ready-made garments and a host of other articles fall in this category. This channel is also suitable when the goods are of a perishable nature, and quick distribution is essential. However, the manufacturer will have to undertake such functions as transportation, warehousing and financing.
The third channel, from the producer-wholesaler to the consumer, can be successfully used in distributing industrial goods. Under industrial goods are included goods which are used for further production and not for resale. This is a shorter channel, and the producer eliminates the retailer in this channel link. In this case, the buyers are business houses, government agencies, consumer co-operative stores, etc.
The fourth channel, from the producer-wholesaler-retailer to the consumer, is the longest route in the distribution link but is very popular. It is used for the marketing of a variety of consumer goods of daily use, particularly where the demand is elastic and a large number of similar products are available. This channel is preferable when the market for the goods is highly competitive, business plan distribution channels.
This channel is also suitable when the producer operates under the following conditions:. d Products are not subject to change due to changes in fashion, business plan distribution channels. e Wholesalers and retailers can provide good promotional support. The last channel, from the producer-sole agent-wholesaler- retailer to the consumer, the used by some producers.
The entire production of goods is delivered to the sole agent for further distribution. The sole agent, in turn, may distribute to wholesalers who, in their turn, distribute to retailers.
The manufacturer may appoint a single sole selling agent or he may appoint sole agents area-wise. He wants to pass on the risk of marketing the goods to the selling agents. He avoids the risk involved in selling and, wants to concentrate on production. He cuts down on his marketing expenditure and the expenditure incurred on maintaining a sales organisation and a sales force. But, in doing so, he takes a big risk of relying only on the sole selling agents, he places himself at the mercy of his selling agent.
If the relations between the producer and the selling agent become strained, or if the selling agent fails to distribute the goods, the producer will be put to a great loss. In the marketing of agricultural goods, however, it is a common practice to sell through selling agents.
It is the shortest and simplest channel of direct distribution of goods from manufacturer to customers, business plan distribution channels. It is called as zero level channel of distribution as it does not involve any intermediary. It facilitates direct relationship between business plan distribution channels manufacturer and the customer. Examples — e-business selling through internet ; Direct Mail Order Houses; Chain Stores Colourplus, Nike, Bata etc.
When a manufacturer employs one or more intermediaries to sell and distribute their product to the customers it is called as indirect selling.
In this, goods move from the point of production to the point of consumption through a distribution network. The various forms of indirect distribution networks are:. This channel of distribution involves one intermediary to transfer goods from the manufacturer to the customer. In this, the title and risk transfers from manufacturers to retailers who in turn sell goods to customers. This distribution channel enables manufacturers to retain control and approach large number of potential customers.
Examples — Automobile manufacturers sell their cars through authorised dealers. This channel of distribution involves two intermediaries to transfer goods from the manufacturer to the customer. In this wholesalers and retailers act as a connecting link between manufacturers and consumers. This network enables manufacturer to cover a large market area. It is a most adopted distribution channel for consumer products. This channel of distribution involves manufacturers using the services of agents or brokers to connect with wholesalers and retailers.
Manufacturers appoint agents in major areas who in turn connect them to wholesalers and retailers. It is suitable for manufacturers of limited product line with customers spread over a wide geographical area.
The shortest channel of distribution of goods and services adopted by a producer is the zero level channel, where are absent between the business plan distribution channels and consumer. It was widely used by producers to sell goods and services prior to the advent of industrial revolution and is the one of the oldest method.
Under direct channel of distribution, the manufacturer can adopt one of the following methods of selling:. It is one of the earliest, easiest and cheapest methods of distribution of goods and known as direct selling. The goods are sold by the producers directly to the consumers under this system, and it is usually preferred in case of perishable products like bread, milk, ice-cream, fish, meat, business plan distribution channels, egg, vegetables and agricultural products, etc.
These products are directly sold to the consumers for the reason they lose their value or become unfit for use if they are stored or transacted for a long time, business plan distribution channels.
Manufacturer employed salesmen for a door-to-door marketing. They move door-to-door to introduce the new product at the door of a customer. Dealers may not have knowledge of the goods or they require a good margin of profit or they do not want to stock unknown products; for them this system is good. Selling under this system may be costly but when the market is known, business plan distribution channels, it can be reduced.
But, at the first stage, when the market is unaware of the product, even at higher cost, this system is better. Here the post office plays a significant role and it is known as business plan distribution channels by post or mail order business or selling by post.
It is an impersonal selling, branding, grading, standardising, packaging etc. By Post, customers are approached by sending catalogues, business plan distribution channels, price lists, pamphlets, etc. Advertising adds further speed in the selling; e.
The producers of perishable and non-perishable goods sell their products to customers, by opening their own retail shops, business plan distribution channels. Manufacturers can push the goods quickly through retail shops and can offer satisfactory service to customers, thereby building goodwill.
It also helps the producers to study the market trends, fashion preferred by buyers and style trend of people. This system offers a two way communication and the price is regulated.
Perhaps, there are few drawbacks of adopting Direct Marketing Channels are given as under:. i When customers are innumerable and spiral over a large area, business plan distribution channels may be difficult to have direct contact with them economically.
ii When customers are multi-millions in number, it may be difficult to establish a direct contact with them. There is one middleman like a Sole Selling Agent who distributes the goods through a number of middlemen subsequently or, there may be a number of business plan distribution channels when the producer distributes the products through a number of agents or wholesalers or even retailers.
Retailer sells directly to the consumers whereas wholesalers sell through them. i One-level Channel Only one intermediary between producer and consumers is present here.
It may be a retailer or a distributor. In case the intermediary is a distributor, this type of channel business plan distribution channels used for specialty products like washing machines, refrigerators or industrial products.
Distribution Channels Overview - How to Build a Startup
, time: 1:27Place: Distribution Channels | Introduction to Business [Deprecated]
Marketing channels are part of the marketing mix. Supply chain professionals are specialists in the delivery of goods. Marketers view distribution as one element of the marketing mix, in conjunction with product, price, and promotion. Supply chain management is more likely to Nov 25, · Gary Morris is a 25+ year business, marketing, & channel executive who has written and published over articles, white papers, and other thought pieces on a range of topics including channel best practices, marketing effectiveness, technology strategies for business, and business performance management Oct 06, · At least one plan must be offered by a non-profit entity Each multi-state plan must be licensed in each state and must meet the qualifications of a qualified health plan Members of Congress and congressional staff may only enroll in either plans created under ACA (e.g., CO-OPs) or in plans offered in Exchange – but this also required a “fix
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