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Monday, 1 October 2018

Channel Management Versus Physical Distribution

The channel of distribution in its most meaningful and simple form, is the course taken by a product in the transfer of its title. This route includes both the manufacturer and the ultimate consumer, as well as anyone in between. Intermediaries in the channel include both merchants who take tittle and market to their own account, and various kinds of agents,or commission , seller who do not take tittle but who still aid marketing flows and exchange.

Channel management is concerned with the entire process of setting up and operating the contractual organisation that Is responsible for meeting the firms distribution objectives. For example, the comprehensive distribution strategy has to be planned , channel members has to be selected and persuaded to carry the product, negotiations have to be done on the areas of credit payment procedures, inventory levels to be maintained, the promotional support provided, and the supervision and control members planned, before the actual physical distribution of the goods. Physical distribution is therefore narrower than cannel management. However, physical distribution is very vital to the success of the firm's overall distribution strategy.