Trade has increasingly become globalized in various scope in the 21st century. A number of reasons account for this, the first one being the advancement in technology which has enhanced communication and transportation processes. This practical aspect of the current scope of trade grants businesses and consumers the access to quality and best products all over the world. Distribution, thus, forms the most integral part of the global trade. For distribution to occur, a number of distribution channels also referred to as market channels are required to be in place. Distribution channels refer to the set of organizations which are interdependent in their operations and together, they enhance the availability of products …show more content…
The goods are directly linked from the producer to the consumer. This allows for better services’ provision from the manufactures to their customers. Business to business channels is a distribution channel where the flow of goods from the producer to the organization customer is facilitated (Risko & Wiwczaroski 2014). Generally, this distribution channel runs parallel to the consumer channel since they are either indirect or direct. The simplest form of the business-to-business distribution channel is the case where a distributor buys company’s product and later sells them to the customers of the …show more content…
Horizontal marketing system is an arrangement where two or more organizations at same level join to focus on a newly created marketing opportunity. Through their joining, the companies pull together their financial and marketing resources to enable them accomplish what they would otherwise be unable to accomplish without the merger. Companies can also join forces with their competitors worldwide thus enhancing the exchange and distribution of their different products across the world.
Multichannel distribution system is a system whereby a single company establishes more than one marketing channels to facilitate its contact with customers from different parts of the world. Sometimes this approach is referred to as hybrid marketing channel (Mathews et al 2015). Companies operating under multichannel are mainly the huge companies which face extensively complex competition all over the world. With every new channel created, the company has the chance of expanding its market coverage thus gaining more chances of globalizing its services.
Importance of