BU352 Chapter Notes - Chapter 12: Universal Product Code, Barcode, Electronic Document
Document Summary
Distribution channel: the institutions that transfer the ownership of and move goods from the point of production to the point of consumption: the terms distribution channel and supply chain are virtually the same. Distribution channel usually handled by marketing and logistics and supply chain usually handled by operations. Distribution channels are composed of people buying, selling and helping facilitate exchange (transportation) Functions performed by intermediaries: transactions function (buying, risk taking, promotion, selling, logistics function (physical distribution, storing, facilitating function (gather information, financing) Channel structure: direct distribution: manufacturers deal directly with customers (avon, indirect distribution: one or more intermediaries work with manufacturers to provide goods and services to customers; Push strategy: manufacturer conveniences channel members to carry their product; push the product through distribution channel. Pull strategy: direct promotion at customers to increase demand and convince retailers to carry product: multichannel distribution: hybrid approach; online, in stores, through catalogue , consider: customer expectations and channel member characteristics.
