Distribution Channels/Logistics & Sales 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?
Define in your words sales promotion, and explain why it might be used instead of advertising or personal selling.
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Solution Summary
This detailed solution defines a distribution channel, and discusses the relationship between distribution and logistics channels and outlines how geographical location affects the selection of distribution channels. It also defines sales promotion and discusses why it might be used instead of advertising or personal selling.
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A distribution channel is the way in which product is delivered from the vendor to the customer. It could be a website, a retailer, a wholesaler, an agent, telemarketer, or through direct mail. Most companies use a mix of distribution channels and often offer different prices based on the channel. For instance, Coca Cola has a vending, retailer, wholesale club, B2B, c-store, supermarket, and on site distribution channels. Each of these demand a different level of service, product mix and pricing. In addition, the amount of product and selection which the end user wants effects the distribution channel.
The relationship between channels of distribution and logistics is based on several factors. If there is a direct link between the vendor and consumer the price can be (but is not always) lower. Think of warehouse clubs (Costco) in which a vendor can deliver full truckloads or at least pallets of merchandise at one time. As a result there is a lower cost of supply so customers can buy the product at a lower price. Or consider when you buy a product directly from the supplier. You don't pay a middleman for ...
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- BA, University of Southern California
- MSS, United States Sports Academy
- Ed.D, Boise State University
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