Distribution Management : a critical approach.

1.0Introduction

Very few products are sold by their producer outright to the final customer. The

vast majority pass through the hands of cardinal or more(prenominal) intermediaries, such as wholesalers, dealers, brokers or retailers. When job links are completed between these intermediaries, a merchandise channel is formed. Intermediaries create value by reducing the spatial separation - the physical distance between the actual prefigure of production and the point of ingestion - between manufacturers and final users of products and services. The kin between food marketing and physical distribution is not clear defined. There is a disagreement over what can licitly be regarded as physical distribution. The broad definition includes decisions on the number of outlets to be supplied and choice of intermediaries, as well as the physical organization of transport and storage operations. A more specific definition assumes that the basic framework of outlets and intermediaries is already established and commands the role of physical distribution to be the efficient endeavor of goods through these predetermined channels (Hawkins. 1999). As we can see from the history of Star Chemical Co. the managers have nearly no start out in choosing and handling the appropriate channels of distributions. besides Star Chemicals sales force have no experience in selling to wholesalers or retail firms in the consumer area.



therefore before we continue any further, we must first record the meaning of marketing channels and the importance of selecting them. So a marketing channel can be defined as exchange relationships that create customer value in the acquisition, consumption and disposition of products and services (Pelton, Lou, E. 2001). This definition implies that exchange relationships emerge from market postulate, as a way of serving market needs. beam members must enter the marketplace well equipped to be flexible enough for any changes in the market needs and wants. To...

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