Posted in Marketing and Strategy Terms, Total Reads: 12895
Definition: Conventional Distribution
The conventional distribution channel is the most common distribution channel. It comprises of a producer, wholesalers and retailers, all acting independently. Hence, having coordination between these three becomes the major challenge for such a system. Also, channel conflicts are very common, leading to disruptions in distribution. Due to this, companies are now going towards developing integrated channels (vertical marketing systems or horizontal marketing systems).