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Channels of Distribution

Channels of Distribution. Distribution and Planning The 4 th P of the Marketing Mix - Place. Vocabulary to Know. Channel Of Distribution Intermediaries Wholesalers Rack Jobbers Drop Shippers Retailers. Brick & Mortar Retailers E-tailing Agents Direct Distribution

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Channels of Distribution

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  1. Channels of Distribution Distribution and Planning The 4th P of the Marketing Mix - Place

  2. Vocabulary to Know • Channel Of Distribution • Intermediaries • Wholesalers • Rack Jobbers • Drop Shippers • Retailers • Brick & Mortar Retailers • E-tailing • Agents • Direct Distribution • Indirect Distribution

  3. Distribution The path a product takes from producer or manufacturer to the final user.

  4. Channel Members . • Intermediaries (Middle Men)Any business involved in moving the products from the manufacturer to the final user . • Are valuable because they often have expertise in areas that producers do not have. These areas include: • Displaying • Merchandising • Creating Locations

  5. Classified by whether or not they take ownership of the goods and services. Merchant Intermediaries (Merchants) Take ownership of products and services Ex. Retail Store Agent Intermediaries (Agents) Do not take ownership of the product or services Ex. Real Estate Agent

  6. Merchant Intermediaries Wholesaler Buy large quantities of goods from manufacturers, store the goods, and then resell them to other businesses. Rack Jobbers Manage Inventory and Merchandising Drop Shippers Owned but never physically handle the products. Retailer Sell goods to the final consumer for personal use. Brick and Mortar Sell goods to the customer from their own physical stores. Non Physical Retailers Automatic retailing, Direct Mail and Catalog retailing, TV home shopping, and online retailing (e-tailing).

  7. Agent Intermediaries Agents Primary function is to bring the sellers and the buyers together. They are not connected with the buyer or seller. Examples of Agents Travel Agents, Brokers, Real Estate Agents, Independent Manufacturer’s Representatives.

  8. Direct and Indirect Channels • Direct distribution • Occurs when the goods or services are sold from the producer directly to the customer; no intermediaries are involved. • Indirect distribution • Involves one or more intermediaries. Channels of Distribution are classified into 2 categories

  9. C D B E A

  10. Picture References http://media.cbs3springfield.com/images/320*225/target_wareho http://theaustintimes.com/wp-content/uploads/2010/12/target.jpguse.jpg http://www.dhh.louisiana.gov/offices/images/imgs-100/people.jpg http://www.premisemarketing.com/images/uploads/coca-cola_logo_script.jpg http://www.sunglasstent.com/images/NikeSwooshRed.jpg http://www.ashwellgolf.co.uk/UserFiles/Image/Titleist1.jpg http://i.ehow.com/images/a06/h2/b9/become-finance-broker-800X800.jpg

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