1. M 3.07 Distribution Channels

2. Intermediary: “middle man” # of Channels: the more common the item, the more channels involved Distribution intensity: the number of retailers in the channel –Leads to ideal market exposure

3. Channel w/Wholesaler PRODUCER WHOLESALER RETAILER CONSUMER

4. Channel w/Agent Used when producer does not want responsibility for selling activities PRODUCER AGENT CONSUMER

5. Adding Value To Product Perform channel activities expertly

6. Technology & Channel Mgt Some businesses can distribute most/all of their products via Internet Easier to monitor channel members’ activities Can decrease the amount of intermediaries necessary

7. Global Positioning System Allows companies to track movements of drivers & vehicles

8. Impact of Channel Mgt on Customer Service Products in stock Timeliness Communicate effectively Limit backorders

9. Distribution Patterns Intensive: use all available outlets to saturate market Selective: limited outlets in area Exclusive: allows producer to maintain tight control over product