Resumen Distribution Systems

A distribution channel is the channel that each company chooses to bring its
products to the consumer in the most complete, efficient and economic way
possible.

It is a business structure and interdependent organizations ranging from the

point of origin of the product to the consumer. A distribution channel consists of
individuals and companies involved in the transfer of ownership of a product as
it passes from the manufacturer to the end consumer or industrial user.
The above is the general structure of distribution channels present in all
distribution networks and used by different companies to make available to the
final consumer products and services. Furthermore, the distribution channels
require updates evolve and processes as a result of the changes occurring in
the environment.

Functions flows distribution channels

Marketing channels perform the task of moving goods from producers to
consumers. In doing so, the channels close time, place and possession gaps
that separate goods and services from consumers.

To achieve these outcomes, channels members must perform several

marketing functions. These marketing functions are listed below in the order in
which they would normally arise in an automotive distribution channel.

a) Information

The accumulation and distribution of information about current and potential

customers, competitors and others in the marketing environment.

The information flow from the manufacturer to consumers are two-directional.

All parties participate in the exchange of information and the flow can be either
forward or backward.

b) Promotion

The construction and distribution of persuasive and/or informative

communications designed to attract buyers.

The promotion flow refers to the flow of persuasive communication in the form
of advertising, personal selling, sales promotion and publicity.

c) Negotiation

The means by which final agreement on price and other terms (financing,
features, etc.) is reached so that transfer of ownership and possession can be
completed. • The negotiation flow represents the interplay of the buying and
selling function associated with the transfer of title to the products. It involved
the flow in both directions and at all levels of the channel.

d) Ordering

The communication of an end-user’s intention to purchase through the channel

members to producers.

e) Financing

The procurement and allocation of funds required to finance automotive

inventories at the channel’s differing levels.

f) Risk Taking

The bearing of the risks associated with carrying out the channel-related work.
 g) Physical Possession

The successive stages by which the storage and movement of physical

products from the raw materials to final customers occurs.

h) Title

The actual transfer of automobile ownership form one organization to another,

or to the final consumer.

The following graph shows the different functions performed channel members
shown sequentially.

CONCLUDING

Decisions about distribution channels give products the benefits of place and
time benefits to the consumer. The beneficial of place refers to the fact of taking
aproduct near the consumer so that it does not have to travel great distances
toobtain it and thus satisfy a necessity.
1. What is the title? Materials Handling: A Better View
2. What is the subtitle about?