CHANNELS OF DISTRIBUTION
Application: Revenue Achievement, Sales, Market Access
Complex and difficult though channel strategy and management is, it is the “P” for “Place” in the four Ps of the marketing mix; and it needs careful thought. Marketers, more than sales people, have to step back and think through how their product or service is going to reach buyers; how it is going to be “placed” in the market. Figure C.2 depicts the range of direct and indirect channels accessible to marketers. Direct channels involve, for example, field sales, catalogue and, of course, the internet. Indirect ranges from retail to “added value” suppliers. Activities involved in the channel are wide and varied though the basic activities revolve around these general tasks:
(adapted from McDonald, M.H.B. and Wilson, H., 2011)
For many marketers, the distribution decision is primarily about the supply chain’s “front-end”. Distribution channels are designed to move products or services from the company into the hands of the customer. All activities and organizational helping with this exchange ...