B2B Marketing Channels Analysis

The assignment discusses Business-to-Business (B2B) marketing and marketing channels, focusing on distribution channels that connect manufacturers to customers through various intermediaries such as retailers, wholesalers, and internet platforms. It highlights the differences between direct and indirect channels, with indirect channels involving multiple intermediaries and resulting in lower profit margins for manufacturers. The assignment also touches on intensive, selective, and exclusive distribution strategies, emphasizing the importance of understanding consumer preferences and market saturation to maximize profits.

Business To Business Marketing
and Marketing Channels

B2B and Marketing Channels 2

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Introduction
In this present paper we will discuss, the distribution channels which are the chains of business
intermediaries through which goods and services reaches to customers until at end. The
distribution includes retailers, wholesaler, internet and distribution.
1. The channels consist of direct and indirect form. This is totally depends on
intermediaries. In direct form the customers buy goods directly from manufactures.
Indirect form refers to that which follows the chain that starts from manufactures to
wholesaler. Then it comes from wholesaler to retailer and from retailer to customers
(Simpson et al., 2015).The direct channels are shorter than indirect channels. I would
make use of indirect approach because I would not like the customer to know the
manufacture directly. Breaking down the distribution channel helps in getting goods to
consumers. When shampoo passes through the multiple channels it become easy for the
product to be sold. The longer distribution channels are less profitable for the
manufactures.
The distribution channel is the path where the goods travel from manufactures to the ultimate
consumers. The channel is the very simple approach and thus it is useful to analysis all the
sectors starting from structure, functions and contributors. Thus indirect channels are the
important component of distribution channel. They purchase goods from the manufacturers
and sell it retailers. The performance of the services is like credit provision and bulk
breaking.

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In direct distribution the product passes step-by-step process. It enables customers to
communicate effectively with the retailer and get feedback for the goods which are in the case of
shampoo.
There is no cash benefit that is provided when transacting under the indirect channel distribution.
The direct distribution channel it doesn’t complete with reach geographically. The volume
produced in the indirect channel distribution is more compared to direct channel distribution.
2. Distribution channels are a business chain of intermediaries through which service or
goods pass until reaching the consumer at the end. The distribution channel includes the
distributors, wholesalers, internet and retailer. The channels are broken into indirect or
the direct forms; this is based on the intermediaries. The direct channel allows the
consumer to buy goods from the manufacturer. As for indirect channel, it allows
consumers in buying goods directly from the wholesaler. The direct channels happen to
be shorter than the indirect ones. It is especially through the web-based channel, this
having several benefits. Most important, the sales made through the internet can have
several advantages. The important factor of the sales went through the net has an
overhead that is low, and this gives the product a reach globally though it’s a potential
(Allen et al., 2015). The intermediaries do not exist therefore there are no shares of the
profit, most of the direct distribution channels have rates that are higher in profit making.
The indirect distribution channels make less profit because of the intermediaries sharing
the profit. The alternative it mainly involves all the outlets possible which can lead to the
distribution of the products used. It is useful in the products like the laptops where the
distribution is a factor contributes to the success of the business. The firms of the laptop
distribute the brands through the main outlets in ensuring the availability to consumers

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quickly. Many customers appreciate such opportunities in giving profits directly for the
artists and producers.
The intensive distribution aims in the provision of the saturation coverage of the market
through using the available outlets.
3. The customers prefer to purchase directly from the producers because they know that
whatever they will complain that will be considered and they will bring that product with
innovation. The disadvantage is that the products must be tangible. In case of laptops the
direct channel must be considered. The retailers get the goods to the consumers through
the retailing stores. It enables a consumer to communicate effectively with the retailer
and get feedback for the goods which, in this case, is the laptops.
The selective distribution refers to producers who uses a limited number of outlets and sell in
a geographical area in selling the product. This approach is considered to be best as it
involves best performance. It also helps in increasing the productivity. The selective
distribution is best because it consider or prepared to shop around.
The exclusive distribution could not be used since it’s similar to the selective distribution
through an extreme form. It is one which the wholesaler, distributor or retailer uses in a
specific geographical area. It means that there is a limited because of the specification of the
geographic scope. Therefore getting profit one may not expect a lot as compared to a
selective distribution that is not based on a limited on a particular geographical area (Koval et
al., 2016).

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Reference
Simpson, L. (2015). Managing customer/distributor relationships via e-business channels-
evidence from a UK chemical manufacturer (Doctoral dissertation, Manchester Metropolitan
University).
Allen, D. H., Dewanz, D. M., Paulsen, D. P., John, E. S. I., & Williams, K. L. (2015). U.S. Patent
No. 9,076,848. Washington, DC: U.S. Patent and Trademark Office.
Koval, D. (2016). The role of digital channels in initiation of business relationships from the
customer perspective.