{"id":7776,"date":"2016-10-10T22:29:42","date_gmt":"2016-10-10T22:29:42","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/masterybusiness2xngcxmasterspring2016\/?post_type=chapter&p=7776"},"modified":"2019-01-05T01:41:53","modified_gmt":"2019-01-05T01:41:53","slug":"reading-channel-flows","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wmintrobusiness\/chapter\/reading-channel-flows\/","title":{"raw":"Reading: Channel Flows","rendered":"Reading: Channel Flows"},"content":{"raw":"

Channel Flows<\/h2>\r\nOne traditional framework that has been used to express the channel mechanism is the concept of flow. These flows reflect the many linkages that tie channel members and other agencies together in the distribution of goods and services. From the perspective of the channel manager, there are five important flows.\r\n
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  1. Product flow<\/strong>: the movement of the physical product from the manufacturer through all the parties who take physical possession of the product until it reaches the ultimate consumer<\/li>\r\n \t
  2. Negotiation flow<\/strong>: the institutions that are associated with the actual exchange processes<\/li>\r\n \t
  3. Ownership flow<\/strong>: the movement of title through the channel<\/li>\r\n \t
  4. Information flow<\/strong>: the individuals who participate in the flow of information either up or down the channel<\/li>\r\n \t
  5. Promotion flow<\/strong>: the flow of persuasive communication in the form of advertising, personal selling, sales promotion, and public relations<\/li>\r\n<\/ol>\r\n

    Monster Channel\u00a0Flow<\/h2>\r\nThe figure below maps the channel flows for the Monster Energy drink (and many other energy drink brands). Why is Monster\u2019s relationship with Coca-Cola so valuable? Every single flow passes through bottlers and distributors in order to arrive in supermarkets where the product will be available to consumers.\r\n
    \"Five<\/a><\/div>\r\nCoca-Cola explains the importance of the bottlers in the distribution network:\r\n
    \r\n
    \r\n\r\nWhile many view our Company as simply \u201cCoca-Cola,\u201d our system operates through multiple local channels. Our Company manufactures and sells concentrates, beverage bases and syrups to bottling operations, owns the brands and is responsible for consumer brand marketing initiatives. Our bottling partners manufacture, package, merchandise and distribute the final branded beverages to our customers and vending partners, who then sell our products to consumers.\r\n\r\nAll bottling partners work closely with customers \u2014 grocery stores, restaurants, street vendors, convenience stores, movie theaters and amusement parks, among many others \u2014 to execute localized strategies developed in partnership with our Company. Customers then sell our products to consumers at a rate of more than 1.9 billion servings a day.[footnote]http:\/\/www.coca-colacompany.com\/our-company\/the-coca-cola-system\/[\/footnote]\r\n\r\n<\/div><\/blockquote>\r\nRevisiting the channel flows we find that the bottlers and distributors play a role in each flow. Examples of the flows are listed below. Remember, while the consumer is the individual who eventually consumes the drink, the supermarkets, restaurants, and other outlets are Coca-Cola\u2019s customers.\r\n