10. Distribution channels

Inside the chapter of the market, I have considered to be necessary to include that of the distribution channels for being these those who define and mark the different stages that the property of a product crosses from the manufacturer to the final consumer. For it the changes that are taking place in the sector indicate the evolution that is experiencing the marketing, since along with the logistics they will be those who mark the success of any company.

In any case, we must tackle the traditional distribution systems since, independently of being basic to understand the philosophy of the channels, they still include at present an important part of our commercial activity. Distribution channel, we might define it as «economic areas» completely active, across which the manufacturer places his products or services in hands of the final consumer. Here the key element takes root in the transference of the right or property on the products and never on his physical transfer. Therefore, channel does not exist while the entitlement of the good has not changed hands, done very important and that can happen unnoticed.

The distribution channel represents an interactive system that it implies to all the components of the same one: manufacturer, intermediary and consumer. As there are the stages of property that covers the product or service up to the client, this way it will be the denomination of the channel. The structure of the different channels will be the following one:

 

Channel

Trip

Direct

Manufacturer

------------------------------------------------------------------------------->

Consumer

I cut

Manufacturer

--------------------------------------------------------->

Retailer

---->

Consumer

Length

Manufacturer

----------------------------------->

Wholesaler

---->

Retailer

---->

Consumer

Double

Manufacturer

---->

Exclusive agent

---->

Wholesaler

---->

Retailer

---->

Consumer

 

When a company or manufacturer raises the need to choose the channel most adapted to commercialize his products, it will bear in mind a series of questions that will be those who indicate the most suitable system, in reason of his operation capacity and profitability:

  • What control do I want to carry out on my products?
  • Do I want to come to all the corners of the country?
  • Do I want to intervene on the final fixation of the price?
  • Am I going to intervene in all the promotional activities?
  • Do I have big capacity financial?
  • Do I have a big commercial team?
  • Is it interesting to me to interfere in other countries straight?
  • How is my logistic infrastructure?
  • What information level do I wish?
  • Etc.

A) Examples of channels

  • Direct: banks, insurances, industrialists, coupon ONCE, etc.
  • Short: furniture, department stores, big surfaces, cars, etc.
  • Lengths: hotel trade, shops of quarter, etc.
  • Doubles: master's degree exemption, exclusive importers, etc.

B) Functions of the distribution channels

  • They centralize basic decisions of the commercialization.
  • They take part in the financing of the products.
  • They help to reduce costs in the products because they facilitate storage, transport...
  • They turn into a game of the assets for the manufacturer.
  • They intervene in the price making, advising the most suitable.
  • They have a big information about the product, competition and market.
  • They take part actively in promotion activities.
  • Posicionan to the product in the place that they consider to be more suitable.
  • They intervene directly or by implication in the after-sales service.
  • They collaborate in the image of the company.
  • They act like force of sales of the factory.
  • They reduce the control expenses.
  • They contribute to the professional rationalization of the management.
  • They sell products in places of difficult access and not profitable to the manufacturer.
  • Etc.

R2Ainc.com | Sitemap | Contact us

Herren Pantoffeln - Hausschuhe , football manager wonderkids , Polish Pottery , remortgage help , football manager , packaging , incoming tour operator poland , remortgage , football manager 2011 , Pozycjonowanie w Google , Rent a car Poland , Debt Consolidation Loans , DMC Poland , underkläder , debt consolidation