Marketing Notes – Channels


Basic notes from core MBA marketing course, focusing on channels
Subject: Marketing

Distribution Channel

  • Set of interdependent organizations
  • Area of complex decision making for a firm
  • High potential for conflict

Channel Issues

  • Members and levels
  • Motivation and compensation
  • Channel integration
  • Cost vs control

Channel Functions

  • Physical possession
  • Title / Payment
  • Risk taking
  • Financing
  • Information
  • Promotion

Retailing Categories

  • Type of product or service
  • Type of customer service
  • Type of organization
  • Location


  • Link between chain extremes
  • Wholesalers
  • Distributors
  • Agents
  • Varying levels of support


  • Recall the business-to-business purchasing discussion

Why be Part of a Channel System?

  • Reduced financial risk
  • Stimulated demand
  • Merchandising assistance

Advantages/Disadvantages of Particular Channels

  • Company-owned dealerships
  • Franchised dealerships
  • Direct mail
  • Direct sales

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