Marketing Distrubution Channels and Promotion
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What is a distribution channel? What is the relationship between channels of distribution and logistics? How does geographical location affect your selection of distribution channels?
What are the similarities and differences between promotional push strategies and promotional pull strategies? What is an example of a situation in which an organization would use a push strategy? What is an example of a situation in which an organization would use a pull strategy?
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Solution Summary
This solution explains the relationship between channels of distribution and logistics management as well as push strategy and pull strategy in 759 words.
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A channel of distribution comprises a set of institutions, which perform all of the activities utilized to move a product and its title from production to consumption.
Types of Channel Intermediaries.
There are many types of intermediaries such as wholesalers, agents, retailers, the Internet, overseas distributors, direct marketing (from manufacturer to user without an intermediary), and many others. The main modes of distribution will be looked at in more detail.
1. Channel Intermediaries - Wholesalers
They break down 'bulk' into smaller packages for resale by a retailer.
They buy from producers and resell to retailers. They take ownership or 'title' to goods whereas agents do not (see below).
2. Channel Intermediaries - Agents
* Agents are mainly used in international markets.
* An agent will typically secure an order for a producer and will take a commission.
3. Channel Intermediaries - Retailers
* Retailers will have a much stronger personal relationship with the consumer.
* The retailer will hold several other brands and products. A consumer will expect to be exposed to many products.
Logistics is a part of supply chain management. Supply chain management has three processes:
(1) Demand Fulfillment-The objective of the demand ...
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