The Theoretical Framework of Distribution System and Distribution Channel Management

CHAPTER 1: THE THEORETICAL FRAMEWORK OF DISTRIBUTION SYSTEM AND DISTRIBUTION CHANNEL MANAGEMENT 1.1 Overview about distribution and distribution channel 1.2.1 Concept, roles and purpose of distribution 1.2.2.1 Distribution Distribution is the process of making a product or service available in the right quantities and locations when customers want them, using direct means, or using indirect means with intermediaries. (Willam D. Perreault) It’s a movement of goods and services from source through a distribution channel, right up to the final customer, consumer, or user, and the movement of payment in the opposite direction, right up to the orginial producer or supplier. (Business dictionary) Source: * William D. Perreault, Jr, PhD, University of North Caroline. Essentials of Marketing – A marketing Strategy Planning Approad, 12 edition, pp 248. * http://www.businessdictionary.com/definition/distribution.html 1.2.2.2 Roles’s distribution Globalization of markets is a phenomenon that has received much attention and been extensively debated both at the general societal/ institutional / cultural levels and at market and business levels. In any globalization process, distribution of goods and services between and within local industrial and consumer markets is of great importance. Globalization of markets and reoganiztion of distribution are mutually dependent processes that involve changes in market strutures. As national market expand and as new opportunities arise for satisfying consumer demand, greater specialisation in distribution is evident both in level of distribution and in goods and service handled (Mallen, 1996). Distribution excellence has become a powerful source of competitive differentiation. In the 1980’s and 1990’s at USA, companies began to view distribution channles as more than simply a source of cost savings and recognize it as a source of enhancing product or serve offerings as part

References: * Root, F. R., (1998). Entry Strategies for International Markets. New York: Lexington Books. * Cavusgil, S. T., Mitri, M., & Yeoh, P-L. (1995). Selecting Foreign Distributors: An Expert Systems Approach. Industrial Marketing Management, Vol. 24, pp. 297-305. Source: * Kotler, P., & Armstrong, G., (1999) * Cooper, L. (1997). Globe-trotting from home base. Nation´s Business, Vol 85, pp.6. * Jain, S. C. (1996). International Marketing Management. (5th ed.). Cincinnati, Ohio: SouthWestern College Publishing. * Jobber, D., (2001). Principles and Practice of Marketing. (3rd ed.). London: McGraw-Hill 1.4.8.11 Distribution Channel Training Source: * Jobber, D., (2001) * Alonzo, V. (1999). Showering dealers with incentives. Sales and Marketing Management, Vol 151, pp. 24-26. * Gattorna, J. L. (1990). Handbook of logistics & distribution management. 4th ed., Aldershot: Gower Publishing Company. Source: * Jobber, D., (2001) * Jobber, D., (2001). Principles and Practice of Marketing. (3rd ed.). London: McGraw-Hill. * McDonald, L., (1999). Managing channel conflict. Mortgage Banking, Vol. 60, pp. 88-99. * Capozolli, T. K., (1999). Conflict resolution- a key ingredient in successful teams. Supervision, Vol. 60, pp. 14-16.