The Marketer's Handbook: Reassessing Marketing Techniques for Modern Business

CHANNELS OF DISTRIBUTION

Application: Revenue Achievement, Sales, Market Access

The Concept

Complex and difficult though channel strategy and management is, it is the “P” for “Place” in the four Ps of the marketing mix; and it needs careful thought. Marketers, more than sales people, have to step back and think through how their product or service is going to reach buyers; how it is going to be “placed” in the market. Figure C.2 depicts the range of direct and indirect channels accessible to marketers. Direct channels involve, for example, field sales, catalogue and, of course, the internet. Indirect ranges from retail to “added value” suppliers. Activities involved in the channel are wide and varied though the basic activities revolve around these general tasks:

• selling
• marketing
• ordering
• handling and shipping
• storage
• display
• promotion
• merchandising
• information feedback
• installation and service.

Figure C.2: A depiction of different potential channels of distribution

(adapted from McDonald, M.H.B. and Wilson, H., 2011)

For many marketers, the distribution decision is primarily about the supply chain’s “front-end”. Distribution channels are designed to move products or services from the company into the hands of the customer. All activities and organizational helping with this exchange ...