Marketing Management - Distribution Channels

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Marketing Management - Distribution Channels

A distribution channel is the route through which goods or services move from the company to the customer or the transfer of payment happens from the customer to the company.

Distribution channels can mean selling of products directly or selling through wholesalers, retailers etc. The same applies for payment transfer from customers to company; it can move through a path or can be sent directly to the company.

Functions of Distribution Channels
Distribution channels basically function to deliver goods from the manufacturer to the customer.

The following are the functions of distribution channels −

#Facilitate selling by being physically close to customers

#Gather information about potential and current customer competitions, other factors and forces of the environment

#Provide distributional efficiency by bridging the gap between the manufacturer and the user efficiently and economically

#Assemble products into assortments to meet buyers' needs

#Match segments of supply with segments of demand

#Assist in sales promotion

#Assist in introducing new products

#Assist in implementing the price mechanism

#Assist in developing sales forecast

#Provide market intelligence and feedback

#Maintain records

#Take care of liaison requirements

#Standardize transaction


Source: https://www.tutorialspoint.com/marketing_management/marketing_management_distribution_channels.htm