Tell us what you think about our article on An effective distribution channel is crucial for proper supply of goods and for minimizing the gap between the producer & consumer.Can you pliz help me in this question how the growth of using the third party logistics had affected distribution in a developing country?Business is just like life – it is good to have a companion by your side who understands you and... A marketer, a dreamer, a traveller and a philomath. It overcomes the place, time and possession gaps that separate producers from con­sumers. The target for any business is to bring their product or service to the market and make it available for consumers by creating a distribution path or channel. In the absence of middlemen producers may be required to keep larger stock of goods.Marketing intermediaries play a vital role in the distribution of goods and services. The role of distribution channels can be summarised as follows: Distribution channels offer salesmanship: The distribution channels offer pivotal role of a sales agent. Indirect channels can further be divided into one-level, two-level, and three-level channels based on the number of intermediaries between manufacturers and customers.Direct selling is one of the oldest forms of selling products. Distribution channels are not limited to products only even the services provided by a producer may pass through this channel and reach the customer. Usually, the firms tend to use a similar channel as used by the competitors. But some firms, to stand out and appeal to the consumer, use a different distribution channel than the competitors. Producers produce goods and finally make them ready for the market. Role of channels of distribution. Distribution channels performs functions of storing the products in warehouses & supplying them according to demand in the market. The one-level channel is ideal for manufacturers of furniture, clothing items, toys, etc.The two-level channel follows the following process:Wholesalers generally make bulk purchases, buy from the producer, and divide the goods into smaller packages to sell to retailers. Marketing channel may be defined as “Pathways composed of intermediaries, also called middlemen, who perform such functions as needed to ensure smooth floor of goods and services from the manufacturing ends to the consuming ends in order to achieve marketing of the produce of a company.” The distribution channel is the movement of goods and services between the point of production and point of consumption through organisation, that perform a variety of marketing activities. This can be done directly by the producer or service provider, or using indirect channels with distributors or intermediaries. PF. Beyond boosting revenue, distribution channels can also broaden … Since these channels are in direct and regular contact … The retailers buy the product from the manufacturer and sell it to the end buyers. A distribution channel can also provide a sense of how money flows back from the For manufacturers, it is very important to create a mix of distribution channels that allow for ease of availability for the consumer, i.e., a good The target for any business is to bring their product or service to the market and make it available for consumers by creating a distribution path or channel.

(iii) Manufacturer—Own Branches/Depots-Industrial, Institutional or Commercial user. Consumer behavior reveals how to appeal to people with different habitsWalmart is a powerhouse of a business, and one of its key strengths is its marketing mix. Channels of distribution increase the efficiency of marketing because the middlemen are specialised agencies of distribution. Thus we can very safely say that the middlemen play a very vital role in the business activities and to maintain the regular chain of supply of goods from the manufacturers to the ultimate consumers, the existence of the middlemen is very essential. The decision to open an own depot in a zone depends on the turnover in that zone is at least equal to break-even sales values to justify the setting up of a depot.

The indirect channels can be divided up into different levels.The direct distribution channel does not make use of any intermediaries. Distribution channels affect the prices of goods and their positioning in their respective markets.Distributions, ideally, should be set up in a way that limits the number of stops for the product or service before it reaches the end consumer. If delivery time is not an issue, if the demand isn’t that high, the size of orders is large or if there’s a concern of piracy among the customers, direct channels are suited.If the customer belongs to the consumer market, longer channels may be used whereas shorter channels are used if he belongs to the industrial market.Product cost, technicality, perishability and whether they are standardised or custom-made play a major role in selecting the channel of distribution for them.Perishable goods like fruits, vegetables and dairy products can’t afford to use longer channels as they may perish during their transit. Role of Channels of Distribution: In the present widening market, distribution channels play an important role in achieving marketing objectives of an organisation. The various channels of distribution play a critical role in a vendor's go-to-market strategy. The role of intermedi­aries has become important due to increasingly wider markets and growing complexities of distri­bution.A channel of distribution performs the work of moving goods and services from producers to consumers. Distribution channels vary but typically include a producer, a wholesaler, a retailer, and the end buyer/consumer. Manufactures generally produce a large quantity of a limited variety of goods.On the other hand, consumers generally desire only a limited quantity of a wide variety of goods.