BUMANLAG, PAUL BRIAN JORVINA DISTRIBUTION MANAGEMENT

CBET 19- 503P (THS 3:00-4:30PM)

CHAPTER 1: MARKETING CHANNEL CONCEPTS

MARKETING CHANNEL-External (marketing channel exist outside the firm) contactual

organization (parties/firms involves in negotiatory functions; buying, selling, and transferring
title of products/services) that management (Interorganizational management: management
more than one firm, Intraorganizational management: managing one firm) operates to achieve
its distribution objectives (Rosenbloom, 2013).

GROWING IMPORTANCE OF MARKETING CHANNELS

1 The explosion of information technology and E-commerce

Multi-channel synergies are the multiple channel use to improve the effectiveness and
efficiency of the channel. The example of this is brick or mortar, this is use for selling and
buying the products through online and this is medium we called intermediaries.
Intermediaries are the medium use in selling the products (internet and online
distribution channels). Intermediaries there are two possible might happen, the
disintermediation or reduction of intermediaries that will never happened and expected
as prediction only. Reintermediation is the evolution if a new type of intermediary that is
happening now.

2 A greater difficulty in gaining a sustainable competitive advantage

3 The growing power of distributors, especially retailers in marketing channels

4 The need to reduce distribution costs