1
Channel Management /
Distribution
2
A channel of distribution
comprises a set of institutions
which perform all of the
activities utilized to move a
product and its title from
production to consumption
Bucklin - Theory of Distribution Channel Structure
3
Physical distribution is…
Organizing and moving products through
the channels
aka: Logistics = ordering, transporting,
storing, handling and inventory control
The 3rd largest expense
for most businesses
(#1 Materials #2 Labor)
4
Explain how channel members add
value
Right PLACE
Right TIME
Place UTILITY
Location –having the product where customers can buy it
Time UTILITY
Having the product available when the customer
wants/needs it
5
Channel members add value to a
product by performing certain
channel activities expertly
Marketing
Packaging
Financing
Storage
Delivery
Merchandising
Personal selling
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
1
/
63
100%
