TABLE OF CONTENTS About this chapter
Distribution arrangements are amongst the most important factors that affect the success in the market of an organization's products and services. Both public and private sector organizations are faced with a series of complex issues when dealing with the distribution element of the marketing mix.
After reading this chapter, you will understand:
The traditional approach to distribution channels.
The key issues of conflict and control.
The increasing power of retailers in the consumer goods sector and the impact this has had on marketing channels over the past 30 years.
The relevance of distribution decisions on public sector provision.
The impact of e-commerce on distribution decisions.
Distribution channels, sometimes referred to as marketing channels, are vital to an organization's success, whether it is involved in consumer, industrial, or service products, or in the public sector. Distribution has been one of the most neglected aspects of marketing, so much so that Drucker's claim that it was marketing's dark continent (1973) still has some relevance. Distribution still fails to receive the same level of attention as other aspects of the marketing mix but for many sectors it is an area where the most crucial decisions have to be taken. What are channels of distribution?
Distribution channels are the structures by which groups of related organizations transfer goods or services from the initial producer to final domestic consumer or business user. The organizations that operate within these channels are called middlemen. The final selling price of any...
