MARKETING CHANNELS AND SUPPLY CHAIN MANAGEMENT
It’s wonderful to have a great new product, and a great promotion to get the word out, but you need
a way to get the product into the customer’s hands. Distribution—moving goods and services from
producers to customers—is the second marketing mix variable and a key element in the big picture
of the marketing mix.
Chapter 13 is the first of two chapters devoted to distribution strategy. Even if you have that great
product design and a creative promotion that gets consumers interested in it, all that effort is wasted
if consumers have no way to actually buy the product when and where they want it.
The chapter explains that distribution strategy has two critical elements:
marketing channels (also
called distribution channels) and logistics and supply-chain management. The text clarifies the
differences among these elements.
A marketing channel is an organized system of marketing institutions that allow for the physical flow
of goods and services from producer to purchaser.
By contrast, logistics is the process that coordinates the flow of information, goods, and services
among everyone involved in a marketing channel.
Physical distribution, a key aspect of logistics
and a much broader concept beyond just transportation, refers to the efficient movement of finished
goods from the end of the production line to the consumer.
And supply-chain management controls purchasing, processing, and delivery as raw materials are
transformed into products. All of these elements work together to provide ultimate users with
convenient ways for obtaining the goods and services they desire.
Overall Chapter 13 covers the activities, decisions, and marketing intermediaries involved in
managing marketing channels and logistics.
Chapter 14 then looks at the other players in the
marketing channel—the wholesalers, retailers, and direct marketers.
Opening Vignette and Evolution of a Brand
Zappos.com Zips Shoes to Your Door.
What kind of marketing
channels does Nick Swinmurn use for his online shoe business?
How do they differ from those of a brick-
Chapter Objective 1:
Describe the types of marketing channels and the roles they play in marketing
distribution, marketing channel, distribution channel, logistics, supply-chain management,
physical distribution, sorting, marketing intermediary or middleman, retailer, wholesaler, direct channel, direct
selling, party planners, industrial distributors, manufacturers’ representative, merchant wholesaler,
distribution, reverse channel
Marketing channels and supply chain management