Channel Distribution

Posted in Marketing and Strategy Terms, Total Reads: 3297
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Definition: Channel Distribution

Distribution channel is a distribution network through which products move from producer or manufacturers to ultimate consumers or users. The channel comprises of producers, consumers or users and the other middlemen like wholesalers, selling agents and retailers(dealers) who mediate between the manufacturers and consumers.


The channel network usually have three types of flow

- Flow of goods in downward direction from producers to end consumers

- Flow of cash payments in upward direction for goods from consumers to producers through intermediaries

- Marketing information flow in both downward and upward direction i.e from producer to consumer & vice versa

 

The channels of distribution can be broadly classified into following 4 types:


 

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