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Effect of Channels of Distribution on the Sales of a Product

In: Business and Management

Submitted By georgemcurious
Words 8072
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CHAPTER ONE
Introduction
1.1 Background to the Study
Most producers do not sell their goods directly to the final users between them stands a set of intermediaries performing a variety of functions. The process of distribution of goods involves all human and physical means which aid the smooth transfer of such good from the manufacturer to the final consumer. Nickeil (1998)
The growing of distribution is a key strategy variable in marketing management. In deed, if one look at the major strategy of the marketing mix – product, price, promotion and distribution, the greatest potential for achieving a competitive advantage now lines in distribution. Distribution still offers a new frontier for competing usefully especially if the emphasis is placed on the design and management of superior marketing channel systems to provide excellent customer services. Yet design optimal marketing channel system to boost sales, formulating innovative distribution strategies and management channels system effectively is no simple task.
To day, companies are faced with choice of distribution path or strategy that will make product readily available to potential customers. Achumba (1994). Also the need for other institutions or intermediaries in the delivery of good is sometime questioned, particularly since the profits they make are viewed as adding to the cost of product which may eventually slow down sales of the product. The concept of distribution refers to where and how product and services to be offered for sale and all essential mechanism and logistical supports for the transfer of goods and services as well as ownership of goods and services to customer. Stern et al (2006).
This study, therefore, is an attempt to ascertain channel intermediary practices and strategies and its effects on sales of products

1.2 Statement of the Problem
This study is to evaluate the relevance of

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