Distribution Channel in Business

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Table of Contents

Introduction
Manufacturers
Wholesalers
Retailers
Exceptions
Conclusion
References

Introduction

Distribution channel describes the process through which goods pass from the manufacturer to the consumer. An organization can carry out thorough marketing but if the distribution channel is not working, it will be difficult for the goods to reach the consumer (Gorchels et al, 2004, p. 40). Some organizations have rolled out distribution channels that seek to eliminate the wholesaler and retailer in direct selling plans.

These companies have introduced direct selling mostly through multilevel marketing that involves the customers purchasing the products directly from the manufacturers and selling them to the consumers. Although the direct seller of these products helps move the products, there have been many instances of over pricing and uncontrolled selling, tax evasion and inefficiency in the distribution channel (Rosenbloom, 1993, p. 78).

The intermediaries in the distribution channel that include whole sellers and retailers tend to add efficiency to the system leading to effective reach of consumers. These intermediaries increase specialization on the channel because of the flexibility and convenience they offer to customers.

This paper will concentrate on the distribution channel of different kinds of shoes for both men and women. The distribution channel of these shoes follows the regular distribution channel apart from a few instances that involves direct buying and selling.

Manufacturers

Manufacturers are at the top of the distribution chain of the company’s products (McCalley, 1996, p. 168). The company is one of the manufacturers of the products in the diverse economy. The manufacturer of shoes specializes in producing shoes that fit to many customers descriptions and preferences. To some extent, the manufacturers have specialized in handling different distribution phases.

Wholesalers

Wholesalers of these shoes have specialized in moving large qualities of the products from the manufacturers to the different retailers (Dent, 2008, p. 96). They are at the second level of the channel of distribution. Some of these wholesalers stores are owned by the company while the bulk of them are owned by other parties.

These whole sellers distribute shoes at a slightly higher price than the manufacturers. They move large qualities of shoes that only suits large retailers like super markets and shoes stores.

Retailers

The retailers are at the end of the chain next to the consumers (Sheth, 1986, p. 267). They buy the shoes from wholesalers and stock them in retail prices. The retailers

Exceptions

Despite the existence of the above traditional chain on the manufacture of shoes by the company, there are a few instances that the chain has been broken and is not strictly followed. Some retailers prefer to buy the goods directly from the manufactures. They do so to reduce costs associated with procuring shoes that have already been procured by wholesalers.

The role of the wholesaler has been questions especially on the backdrop of increasingly large retailers who easily compete with whole sellers. Similarly, there is the element of online markets that is the main characteristic of e- commerce. Many retailers offer online portals of selling their goods (Dent, 2008, p. 100).

However, the traditional chain of selling the company’s shoes is severally broken through intermediaries who buy the shoes directly from the company and sell them directly to the consumer through online markets.

Conclusion

There are many modifications in the distribution channel especially those that are ICT related that have cast doubt if the traditional channel will last. However, for the distribution of the company’s shoes, all the three levels are necessary because they help in breaking the bulk, consolidation, and distribution.

References

Dent, J. (2008). Distribution Channels: Understanding and Managing Channels to Market. London: Thomson Learning.

Gorchels et al (2004).The managers guide to distribution channels: New York: Thomson learning.

McCalley, W.R. (1996). Marketing channel management: people, products, programs, and markets. New York: Sage Publishers.

Rosenbloom, B. (1993). Wholesale distribution channels: new insights and perspectives. Philadelphia: Cengage Learning.

Sheth, N. J. (1986). Distribution channels. London: JAI Press

Click Here To Order Now!