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It is the way products get to the end-user, the consumer; and is also known as a distribution channel. [1] A marketing channel is a useful tool for management, [2] and is crucial to creating an effective and well-planned marketing strategy. [3] Another less known form of the marketing channel is the Dual Distribution [4] channel.
The process of setting out a broad statement of the aims and objectives of a distribution channel is a strategic level decision. In an intensive distribution approach, the marketer relies on chain stores to reach broad markets in a cost efficient manner. Strategically, there are three approaches to distribution: [4]
The only substantial exception to the three-tier system is the State of Washington. [4] In November 2011, voters in Washington approved Initiative 1183, which dismantled the state-operated retailing system and removed the legal requirement for a three-tier distribution system for alcoholic beverage sales.
1962 Lazer and Kelley defined three groups of the goods mix (product, brand, and price), the distribution mix (channels and physical distribution), and the communication mix (advertising and sales). 1957 John Howard defined four groups of product, price, channel, and promotion [15] [16]
In physical distribution, the customer is the final destination of a marketing channel, and the availability of the product or service is a vital part of each channel participant's marketing effort. It is also through the physical distribution process that the time and space of customer service become an integral part of marketing.
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A supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them [1] to end consumers [2] or end customers. [3] Meanwhile, supply chain management deals with the flow of goods in distribution channels within the supply chain in the most efficient manner. [4] [5]