A path through which goods and services flow in one
direction (from vendor to the consumer),
and the payments generated by them that flow in the
opposite direction (from consumer to the vendor).
The total number of channel
members in a channel of distribution
Businesses or individuals who assist in
moving goods and services from the
producer to the consumer
Companies rely on market research to determine their
target markets’ needs and wants.
Providing Marketing Information
Costs and responsibilities can be shared.
Offering to deliver and install products.
Negotiating with Customers
Selling large quantities of products to
wholesalers and retailers
Work together to finance activities to become
Financing and Risk-taking
Horizontal vs. Vertical Conflict
Occurs between channel
members at the same level
Ex: two retailers selling pet
supplies compete to sell to the
same target market
Occurs between channel members at
different levels within the same
Producers and wholesalers or
producers and retailers
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