1. 1 Distribution Channels BDI3C

2. 2 What is a Distribution Channel? A set of interdependent organizations (intermediaries) involved in the process of making a product or service available for use or consumption by the consumer or business user. The paths of ownership that goods follow as they pass from the producer to the consumer. OROROROR

3. 3 Why are Marketing Intermediaries Used? Intermediaries are used when they are more efficient in making goods available to target markets. Intermediaries offer the firm more than it can achieve on it’s own through: Contacts, Experience, Specialization, Scale of operation.

4. 4 Distribution Options Move customers to the service Move service to delivery system to customers Catering cooked on location Deliver tangible element of service to customers Pizza delivery Pick-up things on which service is to be performed Valet service in hotels Operate at arm ’ s length mail, telephone, Internet, often use multiple approaches

5. 5 Wholesaler Jobber Retailer Consumer  Retailer Consumer  Producer 0-level channel – Direct Wholesaler Retailer Consumer  Producer 2-level channel Producer 3-level channel 1-level channel Producer Number of Channel Levels Channel Level - Each Layer of Marketing Intermediaries that Perform Some Work in Bringing the Product and its Ownership Closer to the Final Buyer.

6. 6 The Business Location A. Understand your marketing strategy and target market of the company – which location best suits your objectives? B. Regional analysis involves the selection of geographic market areas. A firm needs to make sure that a region has sufficient and stable demand to support this firm. C. Choosing the area within the region : Demographic, psychographic characteristics and competition are factors to consider. D. In choosing the individual site, business will consider several factors: E.g., compatible businesses and competition in the area.