Distribution Channel Article Review.docx - 1 Distribution...

This preview shows page 1 - 4 out of 7 pages.

1 Distribution Channel Article Review MKT/421 University of Phoenix Joelle Herbert Professor: William Mc Intyre Due Date: July 24, 2017
2 Define what a distribution channel is and discuss why it is important to the marketing process Distribution channels are an important part of the 4 P’s in Marketing which include price, product, promotion and placement also known as distribution. Distribution channels are a key component in the marketing strategy as it helps build revenue. A distribution channel is the means or route traveled in which a producer gets goods or services to a consumer. Depending on how many intermediaries are involved, the distribution channel can be short or long. There are three main types of channels which include a combination of producer, wholesaler, retailer and the end consumer. Each added step to a distribution channel increases costs of distribution so companies often seek to cut down expenses by reducing steps. B2B and B2C companies can sell through a single distribution channel or through multiple channels that may include: Wholesaler/Distributor Direct/Internet Direct/Catalog Direct/Sales Team Value-Added Reseller (VAR) Consultant Dealer Retail Sales Agent/Manufacturer’s Rep (Qlutch Marketing, Inc 2006-17)
3 Discuss the differences between direct and indirect distribution channels. In marketing there are two types of distribution channels, direct and indirect distribution channels. Direct channel refers to the consumer buying directly from the manufacturer. In the case of Amazon and its product the Kindle, Amazon represents the direct channel as it sells and delivers directly to the end consumer. Indirect channel refers to the consumer buying from the retailer or wholesaler which acts as a middle man between consumer and producer.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture