ABSTRACT

Systems thinking has been applied to distribution to a greater extent than any other aspect of marketing behaviour and management for two reasons. First, it is easier to appreciate the constituent parts of the distribution subsystem and their contributions to the overall marketing programme than is the case in advertising or pricing. And, second, the functions of the various components of the distribution system can be readily agreed upon and described. This chapter explores distribution systems by defining marketing channels in terms of social interaction as well as economic flows; by analysing the management of distribution, including the logistical operation of channels; and by emphasising the distribution-related significance of such elements of the marketing mix as personal selling and packaging. Initially, however, it is necessary to understand the significance of the systems concept to the investigation of distribution channels and management.