Week 7 e-marketing

Distribution channel is a method used to make products available to consumers especially when using intermediaries . Channels can be long or short , single or multiple , and can achieve intensive , selective or excusive distribution . The length of the channel could have any number of intermediaries or it may be direct to consumers . The Blockbuster company may use the following distribution channels to sell this product : 1 . Direct channels : This exists when there are no intermediaries by the supply organization and its customers . The organization sells directly to the final consumer . This method enables

br the supplier to decide all aspects of the contact with the customer , or how frequently to send out a catalogue

2 . Indirect channel : This is a type of distribution whereby there are intermediaries . The wholesalers and retailers may come in as intermediaries in the distribution of goods and services . With marketing exchange taking place at each stage , links become important . The link provided by negotiation takes place in the legal sense of an offer and acceptance although not necessarily formal . This method is useful because one has the information and feedback from all parts of the distribution channel . This method needs monitoring all levels of distribution because products might be out of stock . If the channel is longer it may be difficult to cope with variations of consumer demand Also if the product is not available when it is required it will lead to loss in sales .3 . Multiple or hybrid channel : This is a method which involves many channels . The goal of this channel is to coordinate the activities of many channels , such as field sales representatives channel partners to enable the profitability

Online environment may change the distribution channels depending on the nature of manufacturer 's internet strategy . The role of current channel members may be expanded , unchanged or dramatically reduced . There are some cases where channel members may be called upon to serve target markets that cannot effectively be covered by internet approach . Channel members may be relegated to the role of serving very small niche markets that cannot be efficiently served through internet approaches . Others have been able to expand their roles due to the internet strategy . For example , due to the success in internet strategies , the airlines have reduced or eliminated travel agent commissions forcing many to either go out of business or focus on leisure travel segments

REFERENCE

Business marketing management : B2B by Michael D .Hutt and Thomas W .Speh (2007...