Developing a Distribution Channel Strategy
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1. Discuss the decisions necessary to developing a distribution strategy. What are the major types of channels? Provide an example of each type of channel.
2. How are channel strategies evaluated? Why would channel strategies need adjustment? Provide examples.
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The solution discusses developing a distribution channel strategy.
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1. Discuss the decisions necessary to developing a distribution strategy. What are the major types of channels? Provide an example of each type of channel.
The most important element is to consider how the distribution strategy can integrate into the overall strategy of the company. Deciding the type of strategy that will get the product to market and to the market targets is also important. A company must understand where distribution fits into the company and how important it is. Does the company need to use direct channels to markets or would indirect distribution be better for the company? Not all companies want to distribute directly to end users. Many do not have retail outlets or sales personnel to provide the services of direct distribution strategies. Manufacturers are one type of company that does not always provide direct distribution. Instead they sell to other manufacturers or retail stores and those outlets use the product to complete the product (think automobiles), or sell the product to the consumer (Macy's, Best Buy, etc). Physical distribution also must be considered as part of the strategic plan. However, this topic has been little researched for how it integrates with the rest of the channel distribution and ...
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