Types of Distribution Channels

Before developing a distribution channel strategy, it's important to revisit what a distribution channel actually is. Put simply, a distribution channel is the path that a product or service takes to reach the consumer. A "direct" channel allows consumers to buy directly from the manufacturer, while ...

Distribution Channels. In marketing, a distribution channel refers to the chain of businesses that a product must pass through before it reaches the customer. For example, a bakery sells muffins to a wholesale distributor of baked goods; those muffins are then shipped by one or more trucking companies and resold to a specific supermarket or convenience store. Large manufacturers may rely on many channels of distribution, each of which are composed of intermediaries.

Using a combination of distribution channels for your service business can help you manage demand for your services. You can choose different channels to reach various market segments and develop different pricing strategies that correspond to the income of market segment members. Such a strategy allows you to access new markets while bridging temporary reductions in demand through a low-cost channel.

Direct selling is the action of marketing and selling products directly to the consumer in a non-retail environment. Instead, sales occur at home, work or other non-store location. This system often eliminates several of the middlemen involved in product distribution, such as the regional distribution center and wholesaler.

A direct channel of distribution is the shortest and simplest form of distribution channel; it has become increasingly common since the advent of the Internet. Definition A direct channel of distribution describes a situation in which the producer sells a product directly to a consumer without the help of intermediaries.

A direct channel of distribution is the shortest and simplest form of distribution channel; it has become increasingly common since the advent of the Internet. Definition A direct channel of distribution describes a situation in which the producer sells a product directly to a consumer without the help of intermediaries.

Now that your company has a finished product ready to hit the market, a gargantuan, dreaded task remains - the product launch. For some successful companies it appears lightweight and effortless; for others, it is clunky, ill-timed and dead on ...

Exclusive distribution. It represents the level of international availability selected for a particular product by the marketer; the level of intensity chosen will depend upon factor such as the production capacity, the size of the target market, pricing and promotion policies and the amount of product service required by the end-user.

1) Intensive Distribution: Intensive distribution aims to provide saturation coverage of the market by using all available outlets. For many products, total sales are directly linked to the number of outlets used (e.g., cigarettes, beer). Intensive distribution is usually required where customers have a range of acceptable brands to choose from.

An example of reverse flow channels is Recycling or resale. Simply said it reverses the distribution roles whereby a reverse flow channel is formed. But the flow of product from the consumer to another consumer or another company is the reverse flow channel.

Definition of selective distribution: Type of product distribution that lies between intensive distribution and exclusive distribution, and in which only a few retail outlets cover a specific geographical area. Considered more suitable ...

Selling through the Internet has changed traditional sales models by making some intermediaries obsolete and bringing new structures into play. Affiliate marketing, in which you pay commissions to agents who may also promote your products on their own websites, is an effective alternative for some producers.

A VAR may become a pure-play MSP or may add managed services as a line of business to complement its VAR operation. One of the advantages of transitioning to a managed services business model is that VARs reduce their dependency on product revenue.

The channel of distribution refers to the overall flow of information and goods from original manufacturer to end consumer. The wholesaler, also known as the distributor, acquires goods from a manufacturer, farmer or miner, holds them in a distribution center and then sells them to retailers.