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March 11, 2000






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In fact, while the Internet is playing a major role in changing product distribution and is perceived to offer more opportunities for reaching customers, online marketers still face the same distribution issues and obstacles as those faced by offline marketers. In order to facilitate an effective and efficient distribution system many decisions must be made including (but certainly not limited to): Assessing the best distribution channels for getting products to customers Determining whether a reseller network is needed to assist in the distribution process Arranging a reliable ordering system that allows customers to place orders Creating a delivery system for transporting the product to the customer For tangible and digital goods, establishing facilities for product storage In this part of our highly detailed Principles of Marketing Tutorials we cover the basics of distribution including defining what channels of distribution are and why these are important...
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We will also introduce the key parties in a distribution system, such as the reseller network, though much greater coverage will be given to channel partners and to technical aspects of distribution (e.g., ordering, delivery, storage, etc.) in our next tutorial. What are Channels of Distribution? In the Business Buying Behavior Tutorial, we describe a supply chain as consisting of all parties and their supplied activities that help a marketer create and deliver products to the final customer...
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