Channels_Of_Distribution

Channels Of Distribution Abstract In reading the article “Channels of Distribution” by Geoff Lancaster the article describes the term ‘distribution system’ as to that of complex of agents, wholesalers and retailers through which manufacturers move products to their intended markets.” Marketing channels are usually made up of independent firms who are in business to make a profit. These are known as marketing intermediaries or middlemen. Distribution outlets can include combinations of owned and independent outlets or arrangements like franchising. The routes marketing organizations take when attempting to ensure that their goods and services reach the intended market or market segments. In setting up a distribution system, the organization must make a policy choice between selling directly to customers and employing salespeople and using intermediaries i.e. selling through agents, wholesalers and retailers. In the beginning the decision is usually based on various cost factors. Distribution costs in most cases are figured out by using several different factors like the number of potential customers in the market; how concentrated or dispersed they are; how much each will buy in a given period; costs associated with the practical side of the distributive operation (e.g. transport, warehousing and stockholding .If the organization thinks that they have product, marketing, organization, channel, organizations, distribution, direct, channels, change, wholesalers, through, selling, important, should, retailers, potential, place, intermediaries, decisions, customers, because, term, tend, sell, products, often, must, markets, market, make, internet, great, goods, gateway, example