contestada

View "Types of Distribution Channels." In your own words, describe types of distribution channels and provide an example of each. Discuss the advantages and disadvantages of each using real-world examples. In replies to peers, discuss whether you agree or disagree with the pros and cons they have identified and explain why.

Respuesta :

Answer:

The distribution channels are the different entities involved in the business structure and marketing of a product. Its main objective is to ensure that the product is transferred from the factory to the final consumer.

Explanation:

The distribution channels can be classified into:

Consumer goods channels

They are divided into:

Direct channel

It goes from producer to consumer. It is the simplest that exists to distribute consumer goods, as it does not involve intermediaries. Examples: Avon and Amway

Retail Channel

The distribution follows the following scheme: producer-retailer-consumer. It includes all the large supermarket chains and stores. It is the most visible channel for the consumer. Examples: Wal-Mart stores, frequent cars, gas stations.

Wholesale channel

The distribution follows according to the scheme: producer-wholesaler-retailer-consumer. The distribution of medicinal and food products is done using this channel. The goods that are in great demand are distributed through these channels. Examples: travel agencies, small shops in the villages.

Agent/Broker Channel

Follow the following scheme: producer-agent-retailer-consumer. Producers prefer to incorporate intermediary agents to get their products to the retail market. The products are sold to large retail companies. Examples: distribution chains of perishable food and oil.

Double channel

The sale of the product to the consumer is done following the scheme: manufacturer-agent/intermediary-wholesaler-retailer-consumer. Sometimes manufacturers use intermediary agents. These employ wholesalers who sell to large chain stores or small stores. Examples: market franchises and exclusive importers.