BUS 5112 Writing Assignment

Running Head: CHANNELS OF DISTRIBUTION 1
Channels of Distribution
University of the People

CHANNELS OF DISTRIBUTION 2
Channels of Distribution
According to Wine and Dhar (2011), the distribution channel system gives customers
access to your products and services and is a value chain in ·which different members of the
system add value and are compensated accordingly. There are many different channel
structures, No one channel system is appropriate for every industry, product category, or furn.
The channel structure depends on customer and competitor behavior, the marketing strategy
used, and the resources available. Channel systems can evolve over time as these elements
change. Channel members perform a wide variety of functions for the system. A common
decision sequence is to first choose between direct and indirect channel systems and then
choose particular channel members. Hybrid channel systems include a number of different
channel types that complement one another and perform different tasks to obtain a sale.
Channel power enables a channel member to exert some authority to get another
member to do something it would not otherwise do on its own. Channel management involves
maintaining good relationships and resolving conflict between channel members. Conflict can
be resolved by demarcating products between channel members, helping the channel members
to achieve their goals, and offering more push and pull money. New channel opportunities are
arising from changes in supermarket retailing (category management, efficient consumer
response [ECR], and continuous replenishment programs [CRPsJ), multilevel or network
marketing, and changes in technology.
One industry that comes to mind who has changed channels of distribution over the
years is the News and Media industry. This industry was majorly channeled via newspaper
prints and radios. However, these days, there are a numerous number of media houses who are
fully online and digital in the means of channeling their product. Cable News Network (CNN)
are on almost all cable TV networks in the world and are seen by millions of people on a daily
basis without a single page of news print. They have a full-fledged live website where news
articles are published on a daily basis. They can host live interviews of people and have people
call in from all over the world. News articles can be searched and archived for future references.
Events can be covered and broadcasted live as they happen and consumers can
livestream wherever they are in the world and see live multimedia news service delivered to as
little a screens as a mobile phone/smartphone. Affinity for newspapers (the old channel of
distribution is grossly becoming ineffective and unacceptable. This is one of the major reasons
(consumer-based) for the transition from the old channel of distribution to the new-age internet-
based channel of distribution. Another major reason for this transition would be competitor-
based as all other news and media outlets are going live on the internet as well and they cannot
afford to stay behind. The quality of product/service delivered is another reason for the
evolution. These days, even news and media is being broadcasted at a video resolution that
competes with cinema movies and high-end video streaming devices.
The most significant reason for the transition from old paper-based news broadcasting
to internet-based multimedia delivery is advancement in technology and its wide acceptance
by the masses. People are so addicted to their “screens” that they hardly have time to read
“papers” these days. For this reason, even department stores needed to go multi-channel and
have virtual stores online so people can still reach them while pressing their phones.
From my own perspective, I’d say the most significant of these reasons for transition is
technological advancements. The speed of advancement is putting every business on their toes.
If care is not taken, any business that lags technologically risks the danger of being swept aside
and forgotten. Therefore, each business entity/enterprise must keep up with technological
advancements in order to stay in vogue and be relevant to their consumers. Tsai (2009) also
confirmed that the evolution of the social media makes every single human being a potential
news-source as they can record videos and send news updates even directly from their mobile
phones from anywhere in the world. This is the highest level of scalability that any business
can expect – imagine the power of over 4.39 billion world internet users being your news source
(Kemp, 2019)!
In conclusion, for the sake of those who are still very much into paper-based news
distribution, and for the safety from excessive exposure to screens and rays, a multi-channel
means of distribution of news and media can be adopted pending the time the old paper-based
media broadcasting will be phased out.

References
Tsai, E. (2009). The Evolution of Media Content Distribution: Circulation 1.0 to 2.0. July 1,
2009. Retrieved from https://www.socialmediatoday.com/content/evolution-media-
content-distribution-circulation-10-20 on the 30th of May 2019.
Kemp, Simon (2019). Digital 2019: Global Internet Use Accelerates. January 30, 2019. Retrieved
from https://wearesocial.com/blog/2019/01/digital-2019-global-internet-use-
accelerates on the 30th of May 2019.
Winer, R. & Dhar, R. (2011). Marketing Management (4th ed.). Boston: Prentice Hall.

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Running Head: CHANNELS OF DISTRIBUTION 1

University of the People

arising from changes in supermarket retailing (category management, efficient consumer

response [ECR], and continuous replenishment programs [CRPsJ), multilevel or network

marketing, and changes in technology.

competes with cinema movies and high-end video streaming devices.

to internet-based multimedia delivery is advancement in technology and its wide acceptance

media broadcasting will be phased out.

2009. Retrieved from https://www.socialmediatoday.com/content/evolution-media-

content-distribution-circulation-10-20 on the 30th of May 2019.

accelerates on the 30th of May 2019.

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