8.1 Marketing Channels and Channel Partners ... Companies strive to choose not only the best marketing channels but also the best channel partners. Exclusive simply means limiting distribution to only one outlet in any area, and can be a strategic decision based on applying the scarcity principle to creating demand. Generally, the place of production is not the same as the place of consumption.So the goods have to be distributed to overcome the barrier of place. Their development is Principles of Marketing. Distribution channels can be direct or indirect. For instance, supermodel Cindy Crawford’s line of furniture is sold exclusively at the furniture company Rooms To Go. Key words: distribution channels, value chain, vertical marketing systems, business models, multi-channel retailing 1. Cost of Channel of Distribution: While selecting the channel of distribution, the cost of distribution and the services provided by the middlemen or agents too must be kept into consideration. Others – This category includes firms that provide additional services to aid in the distribution process, such as insurance companies and firms offering transportation routing assistance. Kumar Nirmal Prasad on. At the macro level or the industry level, there are basically two types of distribution channels. Distribution means the process by which we make the goods or the service available to the end consumer. Distribution. B2B channels – B2B Channels involve the movement of goods from a business company to a business company. The producers generally select the most economical channel. In this type of distribution channel, the movement might happen from the business product manufacturer to the end consumer. Channel of distribution refers to those people, institutions or merchants who help in the distribution of goods and services. Distribution channels are defined and classified. INTRODUCTION The starting point of this paper is the term distribution and its meaning. A distribution channel is the set of steps it takes for a product to get in the hands of the key customer or consumer. Principles of Marketing - Channels of Distribution by. Oct 03, 2020 - Factors Affecting Choice of Distribution Channels - Principles of Marketing B Com Notes | EduRev is made by best teachers of B Com. A strong channel partner like Walmart can promote and sell the heck out of a product that might not otherwise turn a profit for its producer. Macro Level Distribution channels. Based on this relationship, we define a channel of distribution, also called a marketing channel, as sets of interdependent organizations involved in the process of making a product or service available for use or consumption, as well as providing a payment mechanism for the provider. From Warehouse (for product storage) to Distribution Center (which adds many value-added activities), from DC to Omni-channel DC – where the future of the supply chain is more about pieces than pallets, all these changes demonstrate why it is a great challenge today to design or redesign a distribution center correctly. Distribution Service Firms – Offer services aiding in the movement of products, such as assistance with transportation, storage, and order processing. This document is highly rated by B Com students and has been viewed 5681 times. The first channel is the longest because it includes all four: producer, wholesaler, retailer, and consumer. Distribution can also be physical or digital, depending on the kind of business and industry. Philips Kotler defines channel of distribution as “a set of independent organisations involved in the process of making a product or service available for use or consumption”. 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