PRINCIPLES-OF-MARKETING_Q4_M12-13-Wk3.pdf - 12 PRINCIPLES...

PRINCIPLES OF MARKETING
QUARTER 4
MODULE 12-13 – WEEK 3
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PRINCIPLES OF MARKETING
QUARTER 4
MODULE 12
The Structure of Distribution Channels
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Target
Distribution channels consist of the physical access to point where the
product is available to the customers and the methods of transporting
or storing goods before making them available for clients. After going
through this module, you are expected to attain the following objectives:
Learning Competency
-
Discuss the structure of distribution channels, its functions,
and the nature of supply chain management (ABM_PM11-IIa-e-
18)
Subtask:
1. Define what is distribution channel;
2. Determine the different types of distribution channels
3. Identify the functions of distribution channels and the nature of
supply chain management
Jumpstart
Activity 1: Word Hunt
Direction: Encircle 10 words that are related to distribution channel.
Words in the pool may come in any direction.
F E R N I N T E R M E D I A R I E S Y S
O S E D E S T R I B U I T I O N E D O O
U R U G R A T S K A C S O R T I E D U P
D E G P R O D E D I S T R I B U T O R P
E C E F P R O D O C T R E T A L I D S L
R U L E O L O L L I D I S T R I O K A Y
P D E R S A Y N O T O B I A S T N E K C
R O S I A L Y C O N S U M E R Y D E O H
U R D S T A N D H S E T I B O R A S R I
D P E E N D E S E A R I H E A R S H E A
O R I N T E R S D D I O R I E S E C T N
C O N S O M E R A K A N G A D E R E A E
E M C A D I I Y M A N C O M E R T S I D
R E T I A L E E R S W H O L E S A I L E
S T E M A R T S E A A A G O O Y O N E S
D E S T R B U T O R S N O I T O M O R P
E O D F A I G A L E E N D L E S S I E R
A N R A T T S B R O K E R I W A D E L O
N S O K W H O L E S A L E R E D S A E D
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Discover
Channel of distribution , also called a marketing channel is define as
sets of interdependent organizations involved in the process of making
a product or service available for use or consumption, as well as
providing a payment of mechanism for the provider. This definition
implies several important characteristics of the channel. First, the
channel consists of institutions, some under the control of the producer
and some outside the producer’s control. Yet all must be reorganized,
selected and integrated into an efficient channel arrangement.
Second, the channel management process is continuous and requires
constant monitoring and reappraisal. The channel operates 24 hours
and exists in an environment where change is constant.
Finally, channels should have certain distribution objectives guiding
their activities. The structure and management of the marketing
channel is thus in part a function of a firm’s distribution objective. It is
also a part of the marketing objectives, especially the need to make an
acceptable profit. Channels usually represent the largest costs in
marketing a product.