What you need to know...

  • Distribution (place) is one of the Four Ps of the marketing mix.
  • The channel of distribution is a group that directs products to the consumer.
  • Distribution channels can be direct, or they can have intermediaries.
  • The producer chooses a channel based on the product and the producer's needs.
  • Wholesalers purchase products to resell to retailers, either store or non-store.
  • Consumers purchase the products.
  • The producer chooses an extensive, selective, or exclusive distribution model dependent on product intensity.
  • Success depends on cooperation and coordination.
  • Channel leadership often is assumed by one member who has channel power and who wants to improve the functioning of the entire channel.