Learning outcomes
To enable students to analyse and understand the configuration of distribution channels.
Lesson content
“The group of institutions that work together to move goods from the factory to the market”.
“A group of operational, interdependent units, arranged in sequence to ensure that the necessary operations are carried out to transfer property or ownerhsip of a product from the producer to the consumer or end user, generating a flow of logistics, information, promotion and money”.
Two categories can be identified depending on the product or owner:
Type channel (ownership channel)
Production – Wholesale – Retail – Consumer
Enterprise Channel
Manufacturer – Wholesaler – Representative – Retailer – Consumer.
Unit Channel (transaction channel)
Factory – Local warehouse – Wholesaler – Representative – Local deposit – Retailer – Consumer.
Certain assumptions underly distribution channels.
A channel, as a concept is superceded by that of the Supply chain:
“the group of operators with common directives and goals that make the distribution process happen”.
Wholesale:
the role of the wholesaler has been revalued thanks to the way management of the wholesaling business has been modernised:
Retail:
Dispersion and assortment
Characteristics of product
Market structure
Environmental factors
Characteristics of company
1. Retail services and distribution formulae
3. Development of different types of retail and wholesale businesses
6. Management control in the retail industry
7. The management of marketing operations
8. Purchasing and logistics management
9. Category management in large retail companies
11. Technological innovation in retail management
12. Retail distribution policy
13. Management of Vertical relationships in Distribution Channels