Principles of Marketing - Module 4

1. Principles
of
Marketing
MODULE 03: STRUCTURE OF DISTRIBUTION
CHANNELS, ITS FUNCTIONS, AND THE NATURE
OF SUPPLY CHAIN MANAGEMENT.

2. Marketing Intermediaries is the
Distribution Channel
A distribution channel is made of marketing intermediaries,
or organization that assist in moving goods and services
from producers to end to users and consumers.
Marketing intermediaries are in the middle of the
distribution process, between the producer and the end
user.

3. Agents and Brokers
Agents are sales representative of
manufacturers and wholesalers, and
brokers are entities that bring buyers and
seller together. Agents and brokers are
go-betweens whose job is to make deals.

4. Industrial Distribution
Industrial distributors are independent
wholesalers that buy related product lines from
many manufacturers and sell them industrial
user. Industrial are used in such industries as
aircraft manufacturing, mining, and petroleum.

5. Wholesalers
Wholesalers are firms that sell finished goods to
retailers, manufacturers, and institution (such as
school and hospitals). Their function has been
to buy from manufacturers and sell to retailers.

6. Retailers
Retailers are firms that sell goods
to consumers and to industrial
for their own consumption.

7. Non- traditional Channels
Often nontraditional channel arrangements help
differentiate a firms product from the competiton. For
example, manufacturers may decide to use nontraditional
channels such as the internet, mail order channels, or
informercials to sell products instead of going through
traditional retailer channels.

8. Channels make distribution simpler by
reducing the number of transactions
required to get a product from the
manufacturer to consumer.

9. Dealing with channel intermediaries frees
producers from many of the details of
distribution activity.
Channels make distribution easier in several
ways the first is by sorting.

10. Channels ease the flow of goods
Sorting out: Breaking many different items into
separate stocks that are similar.
Accumulating: bringing similar stocks together into a
larger quantity.
Allocating: Breaking similar products into smaller
and smaller lots.

11. Without the the sorting, accumulating, and allocating processes, modern
society would not exist.
Channel can ease the flow of goods is by locating buyers for merchandise.
Channel members also store merchandise so that goods are available when
consumers want to buy them.
Distribution channels are the series of marketing entities through which goals
and services pass on their way, from producers to end users.

12. Mendoza Jhon Alfred
Natulla Jhonmark
Flavier Camelle