Directorate of distance education

part in relationship marketing. 
Decisions about physical distribution are key strategic decisions. 
They are not short term. Increasingly it involves strategic alliances and 
partnerships which are founded on trust and mutual benefits. We are 
seeing the birth of strategic distribution alliances. You can see Cavinkare 
as a marketing and distribution company how it is providing solutions for 
its customers. 
Channels change throughout a product’s life cycle. Changing 
lifestyles, aspirations and expectations along with the IT explosion offer 
new opportunities of using distribution to create a competitive edge. 
Controlling the flow of products and services from producer to 
customer requires careful consideration. It can determine success or 
failure in the market place. 
The choice of channel includes choosing among and between 
distributors, agents, retailers, franchisees, direct marketing and a sales 
force. 
Deciding between blanket coverage or selective distribution, 
vertical systems or multi-channel networks, strategic alliances or solo 
sales forces, requires strong strategic thinking. Decisions about levels of 
stock, minimum order quantities, delivery methods, delivery frequency 
and warehouse locations have major cash flow implications as well as 
customer satisfaction implications. 

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Notes
11
Functions of Distribution Channels
Distribution channels perform a number of functions that make 
possible the flow of goods from the producer to the customer. These 
functions must be handled by someone in the channel. Though the type 
of organization that performs the different functions can vary from 
channel to channel, the functions themselves cannot be eliminated. 
Channels provide time, place, and ownership utility. They make products 
available when, where, and in the sizes and quantities that customers 
want. Distribution channels provide a number of logistics or physical 
distribution functions that increase the efficiency of the flow of goods 
from producer to customer. Distribution channels create efficiencies by