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mktg 205 unit 3 project

Decent Essays

American Intercontinental University
Unit 3 Individual Project
MKTG 205 – Principles of Marketing
November 28, 2013

Abstract
This paper is intended to shine a light onto distribution channels, both direct and indirect, as well as, provide a better understanding of channel levels. It will also deal with the different channel organizations, including conventional, horizontal, vertical and multichannel marketing systems.
(Kern R. 2013) These distribution channels and their organizations will help the candy company better meet the needs of the niche candy market that they intend to target.

A Road Map to Candy Distribution
Introduction
Distribution channels make up a large piece of the marketing pie and …show more content…

Selective distribution, however, should never be abandoned because that is what keeps the price of their product from falling below a set value.

Channel Organization Distribution channels are organized in several ways: conventional, vertical, horizontal and multichannel (Kern R. 2013). Some of these organizational methods are more structured than others. When a distribution channel deals with more than one independent producer, such as wholesalers and retailers, the channel is known as a conventional distribution channel. (Kern R. 2013) These channels are not normally known to be strong and typically don’t give the customer the quality of product that they deserve. In a vertical marketing system, the retailers, wholesalers and producers, join forces to create a unified front, promoting an individual product (Kern R. 2013). Vertical distribution channels are stronger than the conventional distribution channels because all of the companies involved carry some of the load of power. (Kern R. 2013) In a horizontal distribution channel, companies join up and combine all of their finances and resources, in order to take on more than one company or product (Kern R. 2013). A multichannel distribution channel is where a large corporation uses two or more marketing channels to better target their desired customer segments (Kern R.

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