Issues in Establishing Distribution Channels

Like most marketing decisions, a great deal of research and thought must go into determining how to carry out distribution activities in a way that meets a marketer’s objectives. The marketer must consider many factors when establishing a distribution system. Some factors are directly related to marketing decisions while others are affected by the existing infrastructure and the relationships that exist with members of the channel.

Next we examine the key factors to consider when designing a distribution strategy. We group these into three main categories:

  1. Marketing Decision Issues
  2. Infrastructure Issues
  3. Channel Relationship Issues

In turn, each of these categories contains several topics of concern to marketers.