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An example of this is an apple orchard: Apple orchard > Transport > Processing factory > Packaging > Final product to be sold > Apple pie eaten An alternative term is distribution channel or 'route-to-market'. It is a 'path' or 'pipeline' through which goods and services flow in one direction (from vendor to the consumer), and the payments ...
As an example, a clothesline and a clothes dryer machine have almost identical purpose The occasion of the product refers to when, where and how it is used. Products that are used in similar occasions will have a higher degree of substitutability. As an example, orange juice and coffee can be used for the same occasion (i.e. breakfast).
Distribution is the process of making a product or service available for the consumer or business user who needs it, and a distributor is a business involved in the distribution stage of the value chain. Distribution can be done directly by the producer or service provider or by using indirect channels with distributors or intermediaries.
Distribution channels include a retail storefront, a website, or a mail-order catalogue. Multichannel marketing is about choice. [ 1 ] The objective of the companies doing the marketing is to make it easy for a consumer to buy from them in whatever way is most appropriate.
There are five common objectives in a joint venture: market entry, risk/reward sharing, technology sharing and joint product development, and conforming to the government regulations. Other benefits include political connections and distribution channel access that may depend on relationships. [30] Such alliances often are favourable when:
However manufacturers will still incur distribution costs, such as the physical transport of goods, packaging in small units, advertising, and customer helplines, some or all of which would previously have been borne by the intermediary. To illustrate, a typical B2C supply chain is composed of four or five entities.
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The channel numbering, signal quality, and tier location of these channels are usually negotiated with a local authority, but often, these choices are made with the intention of one or more of the parties involved to marginalize one channel and emphasize another, such as placing Government access on channel 3 or 10, Educational access on a ...