MKT315 Introduction to Marketing TOPIC 6 QUIZ REVIEW  Leviticus 25:14 If you make a sale, moreover, to your friend or buy from your friend's hand, you shall not wrong one another.  Luke 6:31 Do to others as you would have them do to you. Thoughts &

MKT315 Introduction to Marketing TOPIC 6 QUIZ REVIEW  Leviticus 25:14 If you make a sale, moreover, to your friend or buy from your friend's hand, you shall not wrong one another.  Luke 6:31 Do to others as you would have them do to you. Thoughts & Reflections  Distribution encompasses the processes and organizations that move products and services from manufacturers and service providers to consumers.  A distribution channel can be one or more organizations from manufacturer to retailer that add value as they move finished products and services to consumers. ◦ Distribution channels are made up of manufacturing companies and the intermediaries distribute products and services to consumers. What is Distribution?  Two basic forms of channel structures in distribution: ◦ Direct Distribution Channel: A channel structure in which the manufacturer chooses to sell products directly to businesses or consumers without using intermediaries, other than shipping companies to deliver the merchandise. ◦ Indirect Distribution Channel: A channel structure in which the manufacturer chooses to sell products to wholesalers who in turn resell to retailers or to retailers directly. The retailers then resell the products to businesses or consumers. Distribution Channel Choices Different Distribution Channels  Multichannel Distribution is the use of a combination of two or more indirect channels and possibly a direct channel to reach target markets.  Focuses on expanding market reach and sales touchpoints  Sometimes seeks to add channels in order to take advantage of, or to counteract, the different strengths and weakness of channels in the marketplace  Omni-Channel Distribution occurs when a product is offered across all different types of retail outlets in order to saturate market coverage.  The customer experience is consistent across platforms e.g. online and in-store have the same offerings, prices, selection, payment options, etc.  The cost and complexity is greater Distribution Channel Choices  The primary objective of distribution channels is to move products and services from manufacturers or producers to consumers and to do so efficiently and effectively.  Effectiveness occurs when the basic demand of consumers is met with the right products and services.  Efficiency occurs when... ◦ Time and cost are removed from the supply chain ◦ Unneeded tasks are eliminated in manufacturing, facilitating functions, and distribution The Primary Objective of Distribution Channels  Channel Conflict occurs when one or more distribution partners feel they have been treated unfairly. (Samaha, Palmatier, & Dant, 2011).  Vertical Channel Conflict indicates conflict among