Answer to Question 1
A channel of distribution consists of one or more organizations or individuals who participate in the flow of goods, services, information, and finances from the production point to the final point of consumption. A channel of distribution can also be thought of as the physical structures and intermediaries through which these flows travel. These channels encompass a variety of intermediary firms, including those that can be classified as distributors, wholesalers, retailers, transportation providers, and brokers. Some of these intermediary firms take physical possession of the goods, some take title to the goods, and some take both. Thus, it is critical in the design of a distribution channel to take into consideration both the logistics channel and the marketing channel.
The logistics channel refers to the means by which products flow physically from where they are available to where they are needed. The marketing channel refers to the means by which necessary transactional elements are managed (for example, customer orders, billing, accounts receivable).
Answer to Question 2
D
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