1. Types of Channels
BMI3C

2. Distribution Policies
Intensive, Selective, Exclusive, Integrated
Which policy would be best for a new…
Chocolate bar from Hershey
Sports car from GM
Line of outerwear from Roots
Golf club from Taylor Made

3. Direct Channels Customer buys directly from the producer
No intermediaries
An integrated distribution policy is direct
Farmers’ Market
Bakery
Restaurant
Avon
Roots

4. Indirect Channels
Goes from producer to customer through one or more intermediaries
Importers
May or may not have exclusive rights to distribute a product in their country
Sometimes they seek out new products to import, sometimes they are contacted by a manufacturer looking to expand
Agreements are contracted for a specified period of time

5. Indirect Channels Wholesalers
Buy from manufacturer and sell to retail stores or other businesses
Many manufacturers have minimum orders that they will ship, which are too big for smaller retailers
Key functions
Breaking bulk
Risk bearing
Financing
Buying
Transporting
Managing
Promoting
Providing market information

6. Indirect Channels Retailers
The “front line” – sell directly to consumer
Must have the right…
Merchandise
Price
Time
Place
Quantity

7. Specialty Channels
Indirect channels of distribution that do not involve a retail store
Vending machines
The Internet
Catalogues
Telemarketing
Television sales

8. Activity
For your assigned topic, list the advantages and disadvantages of this channel
Cite some examples of companies/products that use this form of distribution

9. Activity
Which channel of distribution would you use for each of the following goods or services?
Explain the rationale for your choices
Fresh flowers
Clothing items
A one-week holiday in the Bahamas
A Blu-Ray player