MKT607 – Marketing Management
Study aid: Lecture 6
of the 4
of marketing is
. Marketing intermediaries, also known as
products to resell at a profit. Intermediaries include certain types of resellers such as wholesalers and
retailers, who purchase products from manufacturers, then distribute them to consumers and other buyers.
A channel of distribution includes the locations where sellers market their products to the final consumer.
This could be a combination of institutions through which sellers deliver their product (i.e., wholesalers,
retailers, agents). There are many marketing functions that are handled by these intermediaries, including
buying, selling, sorting, financing, storage, and transportation.
The conventional channels of distribution involve many methods of getting products to the final consumer.
These methods may include distribution from the manufacturer directly to the consumer, distribution from
the manufacturer to a retailer to the consumer, and several others. From a strategic point of view, the term
"supply chain management" connotes a holistic, systems approach to viewing product distribution as an
integral component of partnering with vendors, suppliers, and various intermediary marketers.
When determining a channel of distribution plan for a company, the choice of channel may be influenced
by the distribution coverage required, the degree of control the company desires, the total distribution costs,
economies of scale, and channel flexibility. Distribution "can be viewed along a continuum ranging from
â€“ "the manufacturer attempts to gain exposure through as many wholesalers and
retailers as possible" (Peter & Donnelly, 2007, p. 150). An example of intensive distribution would be