PRINCIPLES OF MARKETINGQUARTER 4MODULE 12-13–WEEK 3121
PRINCIPLES OF MARKETINGQUARTER 4MODULE 12The Structure of Distribution Channels122
TargetDistribution channelsconsist of the physical access to point where theproduct is available to the customers and the methods of transportingor storing goods before making them available for clients. After goingthrough 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 channels3.Identify the functions of distribution channels and the nature ofsupply chain managementJumpstartActivity 1:Word HuntDirection:Encircle 10 words that are related to distribution channel.Words in the pool may come in any direction.F E R NIN T E R M E DIA RIE S Y SO S E D E S T RIB UITIO N E D O OU R U G R A T S K A C S O R TIE D U PD E G P R O D E DIS T RIB U T O R PE C E F P R O D O C T R E T A LID S LR U L E O L O L LIDIS T RIO K A YP D E R S A Y N O T O BIA S T N E K CR O SIA L Y C O N S U M E R Y D E O HU R D S T A N D H S E TIB O R A S RID P E E N D E S E A RIH E A R S H E AO RIN T E R S D DIO RIE S E C T NC O N S O M E R A K A N G A D E R E A EE M C A DIIY M A N C O M E R T SI DR E TIA L E E R S W H O L E S AIL ES T E M A R T S E A A A G O O Y O N E SD E S T R B U T O R S N OIT O M O R PE O D F AIG A L E E N D L E S SI E RA N R A T T S B R O K E RI W A D E L ON S O K W H O L E S A L E R E D S A E D3
DiscoverChannel of distribution, also called a marketing channel is define assets of interdependent organizations involved in the process of makinga product or service available for use or consumption, as well asproviding a payment of mechanism for the provider. This definitionimplies several important characteristics of the channel. First, thechannel consists of institutions, some under the control of the producerand 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 requiresconstant monitoring and reappraisal. The channel operates 24 hoursand exists in an environment where change is constant.Finally, channels should have certain distribution objectives guidingtheir activities. The structure and management of the marketingchannel is thus in part a function of a firm’s distribution objective. It isalso a part of the marketing objectives, especially the need to make anacceptable profit. Channels usually represent the largest costs inmarketing a product.