American Intercontinental University
Unit 3 Individual Project
MKTG 205 – Principles of Marketing
June 29, 2011
This paper gives an overview of distribution channels; Channel Levels such as: Direct vs. Indirect Channel Organizations such as Conventional Vertical, Horizontal and Multichannel Marketing Systems. It also, explains my target market needs at the Hershey Company. There is also a brief description of how many channel members the company needs and why they need them.
The Hershey Company is one of the largest manufacturers of chocolate products. Even though, the Hershey Company has done greatly over the past years there are different measures that this company have to take in order to be ran successfully. There are also distribution channels and target markets that has a major impact on the Hershey Company. Distribution Overview
Channel Levels are very important when getting products to a market place so that business can continue successfully. So there are two distinctive channels that exist so this can happen. A direct channel and an indirect channel.
Many companies can run well enough using only wholesalers and dealers. They use three channel systems. When they use more than three this is indirect marketers. The Hershey chocolate bar requires more distribution channels. Distribution channels are needed to sell large quantities of Hershey’s chocolate bars.
Channel Levels are very important when getting products to a market place so that businesses can continue successfully so there two distribution channels that exist so this can happen. A direct channel is where products and goods are sold directly to the customers and this makes a major cut of costs because there are no other companies and agencies involved. An indirect channel is used when business do not sale directly to consumers. Since technology is better these methods of distribution has made life a lot easier because with computers and...
References: Business Dictionary.com. Retrieved (2011 29, June) http://www. business.com./definition/distribution-channel
Marketing .Edition 10, (Hill, K.), McGraw-Hill-2011
Unit 13: Channels of Distribution, Logics and wholesaling .Retrieved http://www2.nscc.edu/
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