Which distribution occurs when a producer selects two or more different channels to distribute the same products to target markets?

Q73:
Inhaltsverzeichnis Show
_____ use another manufacturer's already established channel and are used when the creation of marketing channel relationships may be expensive and time-consuming. A) Strategic channel alliances B) Relationship channels C) Reverse channels D) Multiple distribution systems E) Nontraditional channelization
Q74:
Selfridges is the second-largest department store in Great Britain.It works with House of Frasier,one of its competitors,to reduce operating costs by sharing channels of distribution to ship goods from 1,500 plus suppliers.Selfridges and House of Frasier are engaged in: A) vertical conflict B) an integrated supply chain C) a strategic channel alliance D) an information-based distribution channel E) a distribution cooperative
Q75:
LeBlanc Pecan Company in Richmond,Texas,would like to expand to international markets,but it does not have the time or resources to spend on developing channels of distribution.The company should consider a(n): A) industrial distributor B) franchising system C) reverse channel D) strategic channel alliance E) channel cooperative
Q76:
Which of the following are examples of facilitating functions performed by wholesaling intermediaries? A) sorting and storing B) risk-taking and promotion C) assorting,accumulating,grading,and allocating D) researching and financing E) financial management and storing
Q77:
Vutek manufactures printing machines used to print high resolution graphics for billboards,bus cards,banners,and posters.For distribution,you would expect Vutek to use a: A) network of facilitating agents B) horizontally integrated channel C) reciprocal channel D) direct channel E) vertical marketing system
Q79:
McKesson Corporation is a wholesale company that sells healthcare products to pharmacies,hospitals,rehabilitation centers,and nursing homes.This is an example of _____ distribution. A) intensive B) multiple C) selective D) cumulative E) aggregated
Q80:
Companies selling standardized items of moderate or low value to other companies often use: A) retailers B) industrial distributors C) direct marketing organizations D) agents and brokers E) disintermediation
Q81:

Which of the following is NOT a logistics component of the supply chain? A) push marketing strategy B) production scheduling C) inventory control D) warehousing and materials-handling E) order processing
Q82:
A channel leader is also called a: A) intermediary leader B) channel captain C) channel facilitator D) distribution supervisor E) channel gatekeeper
Q83:
Peachtree Windows has no windows in inventory waiting for someone to order them.It does not make a window until it is ordered.It is able to make 27,000 different window configurations,and will make special adjustments to these configurations if there is a request for modifications as long as the modifications meet the company's exacting safety requirements.Peachtree Window engages in: A) niche marketing B) product development C) mass customization D) marketing aggregation E) customer accumulation

What Is a Distribution Channel?

A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer. Distribution channels can include wholesalers, retailers, distributors, and even the internet.

Distribution channels are part of the downstream process, answering the question "How do we get our product to the consumer?" This is in contrast to the upstream process, also known as the supply chain, which answers the question "Who are our suppliers?"

Key Takeaways

A distribution channel represents a chain of businesses or intermediaries through which the final buyer purchases a good or service.
Distribution channels include wholesalers, retailers, distributors, and the Internet.
In a direct distribution channel, the manufacturer sells directly to the consumer. Indirect channels involve multiple intermediaries before the product ends up in the hands of the consumer.

Distribution Channel

Understanding Distribution Channels

A distribution channel is a path by which all goods and services must travel to arrive at the intended consumer. Conversely, it also describes the pathway payments make from the end consumer to the original vendor. Distribution channels can be short or long, and depend on the number of intermediaries required to deliver a product or service.

Goods and services sometimes make their way to consumers through multiple channels—a combination of short and long. Increasing the number of ways a consumer is able to find a good can increase sales. But it can also create a complex system that sometimes makes distribution management difficult. Longer distribution channels can also mean less profit each intermediary charges a manufacturer for its service.

Direct and Indirect Channels

Channels are broken into two different forms—direct and indirect. A direct channel allows the consumer to make purchases from the manufacturer while an indirect channel allows the consumer to buy the goods from a wholesaler or retailer. Indirect channels are typical for goods that are sold in traditional brick-and-mortar stores.

Generally, if there are more intermediaries involved in the distribution channel, the price for a good may increase. Conversely, a direct or short channel may mean lower costs for consumers because they are buying directly from the manufacturer.

Types of Distribution Channels

While a distribution channel may seem endless at times, there are three main types of channels, all of which include the combination of a producer, wholesaler, retailer, and end consumer.

The first channel is the longest because it includes all four: producer, wholesaler, retailer, and consumer. The wine and adult beverage industry is a perfect example of this long distribution channel. In this industry—thanks to laws born out of prohibition—a winery cannot sell directly to a retailer. It operates in the three-tier system, meaning the law requires the winery to first sell its product to a wholesaler who then sells to a retailer. The retailer then sells the product to the end consumer.

The second channel cuts out the wholesaler—where the producer sells directly to a retailer who sells the product to the end consumer. This means the second channel contains only one intermediary. Dell, for example, is large enough to sell its products directly to reputable retailers such as Best Buy.

The third and final channel is a direct-to-consumer model where the producer sells its product directly to the end consumer. Amazon, which uses its own platform to sell Kindles to its customers, is an example of a direct model. This is the shortest distribution channel possible, cutting out both the wholesaler and the retailer.

A distribution channel, also known as placement, is part of a company's marketing strategy, which also includes the product, promotion, and price.

Choosing the Right Distribution Channel

Not all distribution channels work for all products, so it's important for companies to choose the right one. The channel should align with the firm's overall mission and strategic vision including its sales goals.

The method of distribution should add value to the consumer. Do consumers want to speak to a salesperson? Will they want to handle the product before they make a purchase? Or do they want to purchase it online with no hassles? Answering these questions can help companies determine which channel they choose.

Secondly, the company should consider how quickly it wants its product(s) to reach the buyer. Certain products are best served by a direct distribution channel such as meat or produce, while others may benefit from an indirect channel.

If a company chooses multiple distribution channels, such as selling products online and through a retailer, the channels should not conflict with one another. Companies should strategize so one channel doesn't overpower the other.

What Is a Distribution Channel and What Components Does It Have?

The term “distribution channel” refers to the methods used by a company to deliver its products or services to the end consumer. It often involves a network of intermediary businesses such as manufacturers, wholesalers, and retailers. Selecting and monitoring distribution channels is a key component of managing supply chains.

What Is the Difference Between Direct and Indirect Distribution Channels?

Direct distribution channels are those that allow the manufacturer or service provider to deal directly with its end customer. For example, a company that manufactures clothes and sells them directly to its customers using an e-commerce platform would be utilizing a direct distribution channel. By contrast, if that same company were to rely on a network of wholesalers and retailers to sell its products, then it would be using an indirect distribution channel.

What Are the 3 Types of Distribution Channels?

The three types of distribution channels are wholesalers, retailers, and direct-to-consumer sales. Wholesalers are intermediary businesses that purchase bulk quantities of product from a manufacturer and then resell them to either retailers or—on some occasions—to the end consumers themselves. Retailers are generally the customers of the wholesalers and offer high-touch customer service to the end customers. Lastly, direct-to-consumer sales occur when the manufacturer sells directly to the end customer, such as when the sale is made directly through an e-commerce platform.

What do we call when a manufacturer establishes 2 or more distribution channels to the same market?

Finally, multichannel conflict occurs when a manufacturer has established two or more channels that compete against each other in selling to the same market.

What are the 2 distribution channels?

There are two major channels of distribution: direct and indirect. Direct distribution involves a business selling directly to their customers, usually through a website or a brick-and-mortar store.

Which channel of distribution is an arrangement where in two or more producers at the same level join together for marketing the products?

A Horizontal Marketing system is a form of distribution channel wherein two or more companies at the same level unrelated to each other come together to gain the economies of scale.

What are the 4 types of distribution?

There are four types of distribution channels that exist: direct selling, selling through intermediaries, dual distribution, and reverse logistics channels. Each of these channels consist of institutions whose goal is to manage the transaction and physical exchange of products.