How does merchandise flow through a typical marketingchannel?

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter11: Marketing And Distribution
Section: Chapter Questions
Problem 10AA
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How does merchandise flow through a typical marketing
channel
?

Expert Solution
Step 1

The individuals, organizations, and practices required to move possession of products from the level of manufacturing to the level of sale make up a marketing channel.

Step 2

In a traditional marketing channel, products pass through one or two intermediaries before reaching the end customers. The manufacturer will either send products to a distribution center then to retail outlets, or the supplier will deliver straight to retailers.

Manufacturing unit     distributors       stores             Customer

Few distributors still use the direct-to-store marketing strategy. In a typical marketing channel, suppliers are an alternative factor.

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