Chapter 14- Marketing Channels and Retailing

A marketing channel, also known as a channel of distribution, is a business structure of interdependent organizations that reaches from the point of production to the consumers and facilities the downstream physical movements of goods through the supply chain. Apple uses dual distribution in order to distribute the same product to target market. Dual distribution is when a producer selects two or more channels to distribute the same product to the consumers. Apple uses direct channel by selling their products directly to the consumers in stores and also online at their website. Apple also uses retailer channel. A retailer channel is when the retailer is larger and can buy in large quantities directly from the manufacturer. Apple gives their products to Best Buy, Target, and also Walmart in order for those stores to be able to sell them. Using a direct channel, can be useful because they can profit more. Intensive distribution is used in the Apple company. This is a form of distribution aimed at maximum market coverage. Apple uses this form of distribution by putting their products in different stores in order for potential consumers to buy it. Apple also uses two types of retailing stores in order to put their products out there. Apple uses department stores that sell everything including electronics and they also use specialty store which is their store personally. Marketing channel can be viewed as a way for which products, their ownership, communication, financing and payment, and accompanying risk flow to the consumer.