What is a 'Distribution Channel'

What is a 'Distribution Channel'
A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors and even the internet itself. Channels are broken into direct and indirect forms, with a "direct" channel allowing the consumer to buy the good from the manufacturer, and an "indirect" channel allowing the consumer to buy the good from a wholesaler or retailer.
BREAKING DOWN 'Distribution Channel'
A distribution channel is the path by which all goods and services must travel to arrive at the intended consumer. Conversely, it is also used to describe the pathway that payments make from the end consumer to the original vendor. Distribution channels can be short or long, and depend on the amount of intermediaries required to deliver a product or service.
However, goods and services are sometimes passed to consumers through multiple channels, a combination of short and long. While increasing the number of ways in which a consumer can find a good can increase sales, it can also create a complex system that sometimes makes distribution management difficult. In addition, the longer the distribution channel, the less profit a manufacturer might get from a sale due to the fact each intermediary charges for its service.

1. Distribution Channel.Distribution Channel.
By – Rajat Sharma
BBA (FB) 2
nd
year
164600018.

2. CONTENTCONTENT
Definition.Definition.
Types Of Distribution Channel.Types Of Distribution Channel.
Why Distribution Channel Is Needed?Why Distribution Channel Is Needed?
Distribution Strategies.Distribution Strategies.
Push v/s Pull Strategy. Push v/s Pull Strategy.
Channel Design.Channel Design.
Channel Mix.Channel Mix.
Managing Channels.Managing Channels.
Trends In Distribution.Trends In Distribution.

3. DefinitionDefinition
A distribution channel is a chain of A distribution channel is a chain of
businesses or intermediaries through which businesses or intermediaries through which
a good or service passes until it reaches the a good or service passes until it reaches the
end consumer. end consumer.
Distribution is the process of making a Distribution is the process of making a
product or service available for the product or service available for the
consumer or business user that needs it.consumer or business user that needs it.

4. Types Of Distribution ChannelTypes Of Distribution Channel

5. Types Of Distribution ChannelTypes Of Distribution Channel

ProducerProducer:: Manufacturer Of Any Product.Manufacturer Of Any Product.

Industrial ConsumerIndustrial Consumer:: Customer To Whom The Customer To Whom The
Products Are Made For.Products Are Made For.

AgentAgent:: Whole sellers Purchasing Product In Bulk From Whole sellers Purchasing Product In Bulk From
The Producer.The Producer.

DistributorDistributor:: Retailer Who further Distributes The Retailer Who further Distributes The
Product To The End User.Product To The End User.

6. Why Distribution Channel Is Needed?Why Distribution Channel Is Needed?
It Is a Sets of interdependent organizers It Is a Sets of interdependent organizers
involved in making the product available for involved in making the product available for
consumption to end-user. consumption to end-user.
A distribution channel is the path by which all A distribution channel is the path by which all
goods and services travel to arrive at the goods and services travel to arrive at the
intended consumer.intended consumer.

7. Distribution StrategiesDistribution Strategies

8. Distribution StrategiesDistribution Strategies

9. Push StrategyPush Strategy
In a push strategy, the marketer uses In a push strategy, the marketer uses
intensive advertising and incentives aimed at intensive advertising and incentives aimed at
distributors, especially retailers and distributors, especially retailers and
wholesalers, with the expectation that they wholesalers, with the expectation that they
will stock the product or brand, and that will stock the product or brand, and that
consumers will purchase it when they see it in consumers will purchase it when they see it in
stores. stores.

10. Pull StrategyPull Strategy
In contrast, in a pull strategy, the marketer In contrast, in a pull strategy, the marketer
promotes the product directly to consumers promotes the product directly to consumers
hoping that they will pressure retailers to hoping that they will pressure retailers to
stock the product or brand, thereby pulling it stock the product or brand, thereby pulling it
through the distribution channel.through the distribution channel.

12. Channel designChannel design
A firm can design any number of channels they A firm can design any number of channels they
require to reach customers efficiently and effectively. require to reach customers efficiently and effectively.

13. Channel MixChannel Mix
When a single organisation uses a variety of When a single organisation uses a variety of
different channels to reach its markets, this is different channels to reach its markets, this is
known as a multi-channel distribution known as a multi-channel distribution
network. network.

14. Managing ChannelsManaging Channels
Effective ways To Manage A Channel:
1.Channel motivation.
2.Channel conflict.

15. Trends In DistributionTrends In Distribution
Channel switching.
Customer value.
Disintermediation.

16. ReferencesReferences
https://www.investopedia.com/terms/d/distribution-channel.asp#ixzz4zVXzUbWShttps://www.investopedia.com/terms/d/distribution-channel.asp#ixzz4zVXzUbWS
..
https://en.wikipedia.org/wiki/Distribution_https://en.wikipedia.org/wiki/Distribution_
(business(business))