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Introduction Chapter 1
Introduction Chapter 1
Channel members
2. Service providers – are the ones who provide intangible products to gain satisfaction
Distribution Channel
products) and services (or intangible goods) from the manufacturer (or producer) to
independent intermediaries to the customer. This channel is utilized by firms that want to
expand their markets or end users. The result is increase in sales volume and growth in
sales as they relinquish some channels of distribution control and consumer contact.
market segments by selling through two or more different channels. The middlemen can
either use exclusive, selective, and intensive to obtain faster service and high profit.
c. Physical Distribution
1. Customer service – the ability of the organization to satisfy the customer to its maximum
level.
2. Shipping – the ability to transfer a durable product from one location to the other, which
3. Warehousing – the ability to properly store the raw materials, semi-processed goods
4. Inventory control – the ability to provide sufficient supply of raw materials at the right
Chapter 2
Intermediaries selling
The major role of a marketing channel are that it removes the gap between producers and consumers.
It takes part in sales and adverting and controls firm pricing planning which influences the marketing
strategy.
It affects the product strategy by branding, policies, maintenance, etc. It is composed of different
systems that help the transaction and physical exchange.