Article - Distribution channels as social economies!
Distribution channels are the ways we tell someone somewhere to send the products to the markets with our without marketing effects as profitability, competitive advantages and market share.
Distribution channels mean which ways we send the product to the markets. This can happen locally, nationally or internationally. Distribution channels are either traditional from producer to customer, or they are more complex, for instance with several channels, and channels with different kinds. Distribution channels are much about transportation, since the products must arrive to the markets. Markets are where you and I meet each other in buying and selling processes, and these places can be either real or virtual. We can for instance create markets on the internet! Distribution channels imply social economies, since we meet people doing a job, and these people work for companies which are interested in a good working place with much satisfaction, and the firms involved are also interested in profitability, competitive advantages and market shares for products and brands. One is getting profitability if the revenues exceed the costs. Competitive advantages mean better quality on products and/or better prices on products. And market shares are the company´s in question sales on products and brands in relation to the competitors.
We are working socially in firms, markets and in distribution channels. We work as we are humans from nature. And our social engagement has an correspondingly economy for the firm. We must work properly and sensibly to get the best processes and the best outcomes. The better the employees are for working in the right directions, the better the firm will be in the long run. In the long run, the firm in question must survive. This is also the case for transportation firms. They have to get higher revenues from transport than it costs. Hence, the distribution channels are consisting of you and me and other people when thinking about it, and when doing something work about it.
Distribution channels can be effective or ineffective. And distribution channels can be governed with wrong or right working efforts. It is better to work correctly and as good as possible than doing things stupidly. And the governance in the channels is producers and vendors. In the last step, the customer is the king! The customer makes choices in relation to firms and environments.
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Sverre Larsen
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