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Distribution channel

Function of

Distribution Channel

To collect and communicate marketing information on future and

present customers, rivals, and other marketing forces

To create and perform promotions in order to attract heavy traffic

that indirectly exposes manufacturing products.

To offer physical goods storage and transportation.

To bear the risk of carrying out distributor obligations

To obtain cash to finance inventory at various stages of the

marketing channel

To allow buyers to pay their invoices through banks and other

financial organizations.

To achieve a price and other conditions agreement.

Types of Distribution

Channel Level

The manufacturer has a variety of distribution channel options. It

may use a direct channel or an indirect distribution channel.

The producer who is using a direct channel or zero level channel

sells directly to his customers without the assistance of

middlemen, such as wholesalers or retailers, for instance by

opening their own retail shop or chain store, using a direct selling

method, through mailing order business or e-business. These

channels take the most direct path to the customer.

Meanwhile, indirect selling occurs when a manufacturer

distributes their goods to buyers with the assistance of one or

more intermediaries. A distribution network transports goods

from the place of production to the point of consumption.

A single intermediary is used in a one-level distribution channel to

transport items from the manufacturer to the client and risks are

transferred from manufacturers to merchants, who then sell items

to customers. It may be a retailer or a distributor. These

distribution channels are frequently used to distribute goods such

as washing machines, refrigerators, and industrial equipment.

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