Suggest a new Definition Show Proposed definitions will be considered for inclusion in the Economictimes.com Distribution Channel What is distribution channel? This route or path can either be a direct communication between the company and customer or various interconnected intermediates such as wholesalers, distributors or retailers. Therefore, by distribution channel definition, we mean a set of interdependent go-betweens that work concurrently to make a product reach the end consumer. What are the functions of distribution channels? Physical distribution and logistics:In this phase, the distribution channel performs four functions; assembly, storing, sorting out the product, and transportation from the production to the final buyer. Facilitation: These intermediaries can also handle the task of pre-sale and post-purchase services of a product, such as financing, maintenance, disseminating information and coordination of channels. Enhancing efficiency: There are two methods of creating efficiencies in the process; bulk breaking and making assortments. The wholesalers and retailers buy the goods in bulk from the manufacturers but break them into different quantities to sell them to various channels or customers. Moreover, they also offer various products in a single place which is often a big advantage to the purchasers as they need not have to go to different retailers and wholesalers for different products. Marketing: Distribution channels also act as touchpoints or points of interaction where various marketing strategies are executed. They remain in direct contact with the consumers and support the manufacturers in creating brand awareness and disseminating product benefits and other significant advantages to the customers. Risk sharing: As distribution channel buy products beforehand, and that too in bulk, they also shoulder the responsibility with the manufacturers to sell as much as possible. What are the different distribution channels in the digital age? How can you choose a distribution channel for your product? What are KPIs? Disclaimer: This content is authored by an external agency. The views expressed here are that of the respective authors/ entities and do not represent the views of Economic Times (ET). ET does not guarantee, vouch for or endorse any of its contents nor is responsible for them in any manner whatsoever. Please take all steps necessary to ascertain that any information and content provided is correct, updated and verified. ET hereby
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What are the functions of channel of distribution?Functions Of Distribution Channel. Assembling, storing, bulk breaking, and sorting of products.. Moving goods from warehouses to customers.. Managing payment flow pre-sales or post-purchases.. Providing market information to producers.. Promoting the brand and its benefits to end-customers.. What is meant by channel of distribution?Distribution channels are the paths that products and services take on their way from the manufacturer or service provider to the end consumer.
Which of the following are functions of distribution?Following are the main functions performed by the distribution channels:. Sorting: ADVERTISEMENTS: ... . Accumulation: In order to ensure a continuous supply of goods, middlemen maintain a large volume of stock.. Allocation: ADVERTISEMENTS: ... . Assorting: ... . Product Promotion: ... . Negotiation: ... . Risk Taking:. |