Ast1 Task 2

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A car audio manufacturer has developed a car stereo system that incorporates the latest technology. The manufacturer has decided to use two distribution channels. One channel is to move the product from manufacturer to auto makers who will install the product in new cars. The second channel is to make the product available to consumers through electronics specialty stores. The manufacturer realizes that the channels will differ in terms of length and channel membership. Task: A. Discuss the importance of choosing appropriate channel members. An important aspect of choosing appropriate channel members is that the distribution channel is efficient. A distribution channel (or marketing channel) is the process of getting goods and/or services from the manufacturer to the consumer. Between the manufacturer and the consumer, there can be intermediaries called channel members - wholesalers, retailers, and sales agents. These channel members facilitate the goods and/or services getting to the consumers. The distribution channels generally consist of two parts; first, set locations used for storage, shipping and/or receiving materials such as factories, warehouses, and/or retail locations, and secondly, set routes for distribution (eg. By air, sea, highway, train, and/or Internet) which are used to connect the locations. These “two part” distribution channels would be considered more complex in their structure, while a more simple distribution channel would have only one location for supply and one source of demand, or even more simple, one location for both supply and source of demand. If the distribution channel is too convoluted (too many points during its travel) the product and/or service to be provided can be delayed. If within the distribution channel there is a weak-link, the product and/or service will not reach

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