mktg 205 unit 3 project
American Intercontinental University
Unit 3 Individual Project
MKTG 205 – Principles of Marketing
November 28, 2013
Abstract
This paper is intended to shine a light onto distribution channels, both direct and indirect, as well as, provide a better understanding of channel levels. It will also deal with the different channel organizations, including conventional, horizontal, vertical and multichannel marketing systems.
(Kern R. 2013) These distribution channels and their organizations will help the candy company better meet the needs of the niche candy market that they intend to target.
A Road Map to Candy Distribution
Introduction
Distribution channels make up a large piece of the marketing pie and depending on how these distribution channels are used, they can help to make or break a product. (Kern R. 2013) The Hershey Company is a major competitor in the global chocolate candy industry and as such they have to take measures to remain competitive. (Carrie H. Unit 2 Project)
Overview of Distribution Channels
When it comes to transporting candy bars, distribution channels play a major role in getting the candy from point A to point B. These efforts enable the company to continue to be successful. This is where direct and indirect distribution channels come into play. Many companies have the ability to run smoothly based on dealers and wholesalers alone: these companies using are a direct distribution system. (Kern R. 2013) A direct distribution system allows smaller companies to cut costs by selling either directly to the consumer and cutting out the middle man or using a whole seller to distribute their goods. The Hershey Company, being such a large manufacturer, needs to use more than three distribution channels; such companies use what is referred to as indirect distribution channels. An indirect distribution channel is when more than three distribution channels are needed in order to sell massive quantities of products.
Unit 3 Individual Project
MKTG 205 – Principles of Marketing
November 28, 2013
Abstract
This paper is intended to shine a light onto distribution channels, both direct and indirect, as well as, provide a better understanding of channel levels. It will also deal with the different channel organizations, including conventional, horizontal, vertical and multichannel marketing systems.
(Kern R. 2013) These distribution channels and their organizations will help the candy company better meet the needs of the niche candy market that they intend to target.
A Road Map to Candy Distribution
Introduction
Distribution channels make up a large piece of the marketing pie and depending on how these distribution channels are used, they can help to make or break a product. (Kern R. 2013) The Hershey Company is a major competitor in the global chocolate candy industry and as such they have to take measures to remain competitive. (Carrie H. Unit 2 Project)
Overview of Distribution Channels
When it comes to transporting candy bars, distribution channels play a major role in getting the candy from point A to point B. These efforts enable the company to continue to be successful. This is where direct and indirect distribution channels come into play. Many companies have the ability to run smoothly based on dealers and wholesalers alone: these companies using are a direct distribution system. (Kern R. 2013) A direct distribution system allows smaller companies to cut costs by selling either directly to the consumer and cutting out the middle man or using a whole seller to distribute their goods. The Hershey Company, being such a large manufacturer, needs to use more than three distribution channels; such companies use what is referred to as indirect distribution channels. An indirect distribution channel is when more than three distribution channels are needed in order to sell massive quantities of products.
References: Business Dictionary 2013 Retrieved from www.businessdictionary.com Carrie H. 2013 Marketing 205 Unit 2 Project Kern R. 2013 Marketing 11th Edition. New York: Mc Graw-Hill