originates from the word for CANAL referring to the route products take from production to intermediate and final use.

Despite the growth of direct marketing in today's economy, most producers still sell to consumers through marketing intermediaries.

Marketing channel design starts with understanding consumer purchasing patterns.

When deciding on a company's distribution channel policy, it's crucial to consider the desired level of market exposure.

involves placing products in multiple outlets, aiming for maximum coverage.

focuses on promising or profitable outlets, while;

strengthens partnerships between seller and reseller, resulting in loyalty.

a wholesaler who connects retailers and wholesalers

The movement of goods from raw material to final consumer

Ownership transfer occurs from one institution to another

Direct promotion involves activities like advertising, personal selling, sales promotion, and publicity, directing influence from manufacturers to retailers or wholesalers, and end users to consumers.

companies that own two or more traditional levels of the supply chain, driven by growth and control over access to supply or demand.

It is a co-ordinated system of distribution channel organization.

Each channel member chooses a position or location in the channel.

The cost of distribution can be minimized if transactions are routinized. In effect, through routinization, a sequence of marketing agencies is able to hang together in a channel arrangement or structure.

Buyers and sellers are often engaged in similar activities within the marketplace. There is a degree of uncertainty if manufacturers are unsure of customer wants and needs, and consumers are not always sure what they will find.

There is a danger that there will be conflicts of interest and distribution channels will exhibit levels of conflict.

related to competition among similar types of intermediaries at the same level in the channel.

refers to competition among different types of intermediaries at the same level in the channel.

refers to competition among different levels in a channel.

Channel members appear to share a common goal – maximizing the efficiency and effectiveness of the total system.

Pressures exerted by the manufacturer will lead to stress and conflict in the relationship. If this is an established channel, it is in the interests of everybody to settle the dispute or misunderstanding quickly.

A solution exists to alleviate communications noise in distribution channels. A more efficient flow of information and communications in channels permits members to find solutions to their conflict based on common objectives.

involves communication between conflicting parties. Emphasis is on influencing behavior to resolve conflict; the primary intention is to avoid or reduce conflict concerned with domain or sphere of influence.

Refers to resolution of conflict involving new organizations in the agreement-reaching process.

the normal method by which inter-organizational relations are conducted, adjusted and managed by ‘ambassadors’, envoys or other persons operating at the boundaries of member organizations.

Marketing constantly evolves, requiring marketers to adapt to changing channels and innovations to meet customer needs.

The impact of the Internet on traditional retail channels like bookstores, travel agencies, and record stores has been significant, forcing them to adapt to changing customer purchasing behaviors.

part of the ‘place’ element of the marketing mix and these have had a major impact on channel strategy and design

relates primarily to those elements that facilitate the flow of materials from the company to its distributors, retailers, final customers or all three.

primarily concerned with elements that facilitate the flow of goods and raw materials into and through the organization.

encompasses all of these in a total systems view of the ‘place’ element of marketing.

The web of interrelationships it introduces poses considerable problems in its planning and management, particularly when trying to optimize the performance of the system. This is a reason why the growth of business logistics has been dependent on the development of appropriate IT tactical planning tools.

the need in a systems approach for individual elements to the effectively coordinated and planned.

Having established the need for business logistics, we turn our attention to the design and operation of the system.

In trying to optimize the performance of the total system we are confronted with trade-offs between the different elements; attempts to optimize performance of one part of the system without regard to the other elements tends to result in lower performance for the system as a whole.

may cause conflict in two ways