Distribution channels: routes-to-market
In any marketing mix, the place component (distribution) is concerned with making sure that a product reaches the target market at a convenient time and place. In relation to physical goods, distribution decisions are concerned with both channel management and logistics. Channel management refers to all those activities involved in managing relationships between the producer and the various organizations that distribute the product (e.g. wholesalers and retailers). Logistics is concerned with the physical movement of products from the place where they were made to the place where they will be purchased. Within the consumer goods domain, retailing represents the dominant channel through which goods are purchased. This channel may operate on a direct basis by which products are shipped direct from manufacturer to consumer. Supermarkets represent the best example of the direct distribution channel for consumer goods. Alternatively, goods can be moved from site of manufacture to the site of purchase on an indirect basis. Indirect distribution channels may involve some combination of agents, brokers and wholesalers interposed between producer and retailer. The logistical
By then end of this chapter you will be able to: ● understand the distinctive nature of distribution in financial services ● explain the different forms of distribution used by financial services
providers ● evaluate the strengths and weaknesses of different distribution channels.