Who are the Main Participants in Distribution Channels?

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来自 IE Business School 的课程

Channel Management and Retailing

316 个评分

IE Business School

Channel Management and Retailing

316 个评分

课程 3（共 5 门，Specialization 营销组合实践）

Nowadays a distribution strategy is part of the DNA of many companies and a correct channel management is key for the success of your product. Distribution plans need to be prepared for the long run, combining the following main areas: company profile, portfolio structure and price positioning, go-to-market policy, trade and retail marketing, e-commerce and global retail management. In the last decade, there have been two main revolutions that have affected industries, increasing the importance of Distribution Channel Management: • The IT revolution: considering developments in CRM, supply chain, planning tools, merchandise and reallocation systems, amongst others. • The retail focus: a clear retail strategy can be a differentiator for companies and a strong weapon of competitiveness. Stay up-to-date on how companies are adding these aspects to their main strategic guidelines and making them key points in their managerial decision-making process.

从本节课中

Distribution Channel Planning and Management: Why are They so Important?

At the end of this module you will know the steps to designing and managing a distribution channel. You will also be able to identify the most important players in distribution channels and their roles.

How to Design a Distribution Channel5:37

Key Factors in Channel Management3:56

Expert Interview: Sixto Collazo, International Director of Loewe Perfumes S.A. (LVMH) 113:20

The Role of Distribution Channels in the Value Chain5:58

Who are the Main Participants in Distribution Channels?4:30

与讲师见面

Maria Teresa Aranzabal
Professor
Marketing

[MUSIC]

How are you today?

Now, we are going to describe the main participants in the distribution channel

and what different roles they play.

The two main intermediaries in channel are retailing and wholesaling.

Retailing includes all the activities involved in selling product and

services directly to the final consumer for the personal and

non-business use, and can be classified in terms of several carasteristics.

It can be dependent on the amount of service they offer,

the breadth and the depth of their product line.

The relative prices that they charge and also how they are organized.

However, we will cover this more in depth in lectures three and four.

So that's why today, we are going to concentrate much more on wholesaling.

What is wholesaling?

It includes all the activities involved also selling goods and services.

But in this case it is to those buying it for resale or business use.

We buy it mostly from producers and sell it mostly to retailers,

and industrial consumers, and other wholesalers.

There are some examples.

For example, in the USA, we have Grainger.

That they are into the maintenance and repair type of services.

Why should we use a wholesaler?

We already covered it in another lesson.

But in general, they do add a lot of value by performing one or

more of the following channel functions.

Like for example, selling and promotion.

Buying an assortment building, bulk breaking.

Warehousing and transportation, as we already saw.

Financing, risk bearing, market information,

management services and advice.

So, how many types of wholesalers do we have?

There are several.

We have, on one side, the merchant wholesalers.

This is the largest group.

Usually, they take title of the goods and there can be two types.

The full services and the limited services.

Meaning that they can provide more or less services.

There is another group called brokers and agents.

In this case, they don't take title of the goods and they perform only a few functions.

And they are specialized in general, either by product line or

by customer type.

If we talk about brokers, what do they do?

They bring buyers and sellers together, and assist in the negotiations.

Whereas the agents, they do represent buyers and

sellers in a more permanent place.

And finally, there is another type of figure that are the manufacturers,

sales branches and offices.

In here, the wholesaling is done by sellers and

buyers themselves rather than by independent ones and

if we have to talk about what the trends not in wholesaling are.

What are they are constantly trying to do and are really fighting for are

better ways to meet the changing needs in the supplier and target customers.

They constantly offer additional services and

many of them are also going global, and becoming global.

So in this session, as you see, we have learned that there are different types of

intermediaries with many different roles.

And in deciding the distribution channel,

we have to consider these different alternatives.

I hope you've profited from this first session where we talk about

the importance and what the main strategies in distribution channelare.

I am looking forward to seeing you in the next session where we are going to

cover how we manage from simple to complex distribution channels and

the growing importance of trade marketing where channels,

are evolving from client to partner.

[MUSIC]

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