B Channel

Posted in Marketing and Strategy Terms, Total Reads: 975

Definition: B Channel

Business channel is commonly known as B channel in marketing. Most of the producers do not sell their goods directly to the end consumers. There remains a group of intermediaries who stand between the manufacturers and end users who participates in the process of making the products or service available to the consumers. These intermediaries are collectively known as business channels or marketing channels. A manufacturer should properly choose the channel so that their product or services can reach the consumers easily and in the most cost effective way. Dealers, distributors, whole sellers, retailers are members of the marketing channels.

The functions and roles of the channel members are as follows:

1. Collecting information about potential customers, competitors and other forces in the business environment,

2. Developing persuasive ways of communication to stimulate purchase

3. Negotiating and reaching agreements on price so that the transfer of ownership can be affected.

4. Assume risk to carry out the channel work

5. Gather funds to finance inventories at different levels of marketing channels

6. Placing orders and providing suitable storage and physical movement of the products

In fact, the channel members’ contacts, experience, specialisation and scale of operation can make the goods widely available and accessible to the target markets which offer the manufacturing firms efficiency and effectiveness which it cannot achieve on its own.


Hence, this concludes the definition of B Channel along with its overview.


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