Week 8 Date: March 22, 2021

Subject Principles of Marketing

Type of Activity Concept Notes
Activity Title Distribution Channels
Learning Target Discuss the structure and functions of
distribution channels
Reference Title Principles of Marketing
Author/s Jonalyn C. Baquillas
DISTRIBUTION CHANNELS

Distribution channels or marketing

intermediaries consist of interdependent
organizations that help make products
available for use or consumption by the
final consumers.
DISTRIBUTION CHANNELS

Distribution channels may have several layers, and

each layer is called a channel level. The number of
intermediary levels indicates the length of a
channel.
STRUCTURE OF
DISTRUBUTION
CHANNELS
STRUCTURE OF DISTRIBUTION CHANNELS

Manufacture
r
A direct marketing channel has no
intermediary levels – the company
sells directly to consumers.
Consumer
STRUCTURE OF DISTRIBUTION CHANNELS

A indirect marketing channel contains one or more

intermediaries.

Manufacturer Distributor Retailer Consumer

FUNCTIONS OF
DISTRUBUTION
CHANNELS
TO MANUFACTURERS
FUNCTIONS OF DISTRIBUTION CHANNELS

Below are the functions of marketing intermediaries

that especially benefit the manufacturers:
• Information provider – they can provide consumer
insights to the manufacturer that can help in offering
better products.
FUNCTIONS OF DISTRIBUTION CHANNELS

Below are the functions of marketing intermediaries

that especially benefit the manufacturers:
• Product promotion – marketing intermediaries,
specifically retailers, conduct promotions and
marketing efforts in order to encourage customers to
patronize certain products.
FUNCTIONS OF DISTRIBUTION CHANNELS

Below are the functions of marketing intermediaries

that especially benefit the manufacturers:
• Physical distribution – marketing intermediaries
take care of physical distribution and packaging
goods for transport and at-home storage.
TO CONSUMERS
FUNCTIONS OF DISTRIBUTION CHANNELS

Below are the functions of marketing intermediaries

that especially benefit the consumers:
• Matching demands and supplies – customers find
almost everything they need at certain stores,
whether it is a supermarket, a department store, or a
bookstore.
FUNCTIONS OF DISTRIBUTION CHANNELS

Below are the functions of marketing intermediaries

that especially benefit the consumers:
• Merchandising – marketing intermediaries take
care of physically arranging goods so it will be
convenient for the customers to shop for what they
need.
FUNCTIONS OF DISTRIBUTION CHANNELS

Below are the functions of marketing intermediaries

that especially benefit the consumers:
• Sales promotion – customers enjoy sales
promotions and other marketing efforts from time
to time, which may focus on just a few products or
all of the products in the retail store.