Comparison of distribution channels and structures economics essay

literature review on distribution channel pdf

Note that more than one wholesaler level may be involved—a local wholesaler serving the Inland Empire may buy from each of the two wholesalers listed above and then sell all, or most, of the products needed by local office supply stores.

Finally, some firms combine these roles—e.

types of distribution channels

McLane created unique packaging and products featuring movie themes, college football themes, and other special occasion branding that were designed to appeal to impulse buyers. Sometimes, it may also be useful to consider margins per unit of space to best allocate retail space to different categories.

Although private label brands sell for lower prices than national brands, margins are greater for retailers because costs are lower.

Distribution channel structure

Supply chain management takes a different approach. A large retailer, for example, may tell a small manufacturer that no further orders will be forthcoming unless a price discount is offered. A decision that is essential at the brand level is positioning. Using many platforms for communicating to their clients, companies may use the following techniques to effectively sell their products: online means, through the mail, telemarketers, or seminars Stone,B. Search engines cannot usually measure the amount of traffic that goes to a site. Industry experts note that catalogs are changing, as is their role in the retail marketing process. These animations have proven very unreliable. As the need for variety increases, a wholesaler may then be introduced. The Kenyan fresh vegetable industry is a classic example of personalised trading networks enabling international trade between Kenya suppliers and their familial often Asian buyers in the United Kingdom.

Direct marketers come in a variety of forms, but their categorization is somewhat arbitrary. A gasoline station that offers an "average" level of service at prices higher than those of self-service stations might either target the low cost segment, lowering prices and cutting costs, or targeting a premium service and "beefing up" service.

research paper on distribution channel pdf

The manufacturer, may, however, involve a broker or agent who handles negotiations but does not take physical possession of the property. If a potential customer is valuable enough, it may be worth paying for enhanced listings.

Supermarkets Supermarkets evolved in the os and s.

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Channels of Distribution