In: Economics
Distribution channels in marketing are product, promotion, price and placement. A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors, and even the internet. A distribution channel represents how an organization will make its product or service available to the end consumer for consumption or use. I chose to take a look at Apple. The first distribution channel that Apple utilizes is where the producer sells directly to a retailer who in turn sells Apple’s product to the end consumer. Apple sells their products to companies such as Best Buy, Target, Verizon, and many others stores. Another channel that Apple utilizes is a direct-to-consumer where the producer sells its product directly to the end consumer; this is the shortest distribution process. Apple has its own retail stores, along with the company’s online store to sell directly to the consumer. Apple is one of the most successful brick and mortar shops in the United States. I find it interesting how well Apple has done as an electronic mogul. They sell to reputable retailers and get their products in many different store fronts.