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. The selection of a distribution system is key as it usually binds the firm long term, involves heavy investment and can be the deciding factor in determining the success or failure of a marketing strategy. channel management and policies, where the focus lies on managing channel relationships to influence channel members into support of the seller's policies. The degree of purchase opportunity is a major factor, whether the competitive objective is to convert, increase, attract or retain present customers. When RCA first marketed its videocassette in the United States, it estimated that there were around 20,000 stores that could handle the product but that only about 8,000 could do the selling job required.
