ABSTRACT
A distribution system is a network of people, institutions or agencies involved in the flow of a product to the customer, together with the informational, financial, promotional and other services associated with making a product convenient and attractive to buy and rebuy. A major problem for many firms lies in securing wide distribution. Yet for those firms selling consumer products through retail outlets, market penetration and store distribution are equivalent. Even if the firm's offering vis-a-vis competition is "right" for the segment in terms of product, proposed advertising and price, no sales occur unless arrangements are made that allow the customer to purchase and receive the product when needed and ordered. But insuring that a product is made conveniently available for purchase may not be enough. If customers are to be retained and sales to be high, certain pre-and post-sale services as weIl as promotional activities may need to be provided by the channel.
