For a company like GWC USA Inc, the distribution channels that they choose to use is important since it is the path that products and their legal ownership follow from producer to consumers or business users. The physical distribution involves the actual movement of products from producer to consumers or business. Distribution strategy deals with the marketing activities and institutions involved in getting the right good or service to the firm’s customers. Marketing channels are made up of retailers and wholesalers that move the product through the channel to the customer. A distribution channel carries goods directly from producer to the consumer or business user. No one distribution channel fits every products and marketers must select which channel will best fit the firm and the product’s needs along with their customer’s needs. Consumer goods, business goods, and services may move through a direct channel from the producer to the consumer or a channel with multiple intermediaries.
When it comes to distribution channels, this also involves direct channels which may be simple, but there many benefits to using marketing intermediaries. These marketing intermediaries often lower costs to consumers and wholesalers can also add significant value to the purchasing process. Direct distribution involves having direct contact between the producer and consumer, most common in business to business markers, often found in marketing of expensive, complex products that may require demonstrations, and the internet is helping companies distribute directly to the consumer market. For the distribution channels using marketing intermediaries, these include producers who distribute through wholesalers and retailers, it is inexpensive products that are sold to thousands of consumers in widely scattered locations, and it lowers costs of goods to consumers by creating market utility. The main role of marketing intermediaries is to reduce the number of transactions required by consumers because they consolidate the locations where consumers can purchase goods.