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Functions of Distribution Channel

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kdheerendra455
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12 views

Functions of Distribution Channel

Uploaded by

kdheerendra455
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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FUNCTIONS OF

DISTRIBUTION CHANNEL
---By Dheerendra Pratap Singh
MBA (HR), IMS, Lucknow University
Marketing Management Semester-I
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.
COMPONENTS OF DISTRIBUTION
SYSTEM:
 The distribution system involves two components such as below.
Channels of distribution
Physical distribution
 Channels of distribution: – means a process through which the products are transferred
from the producers to the ultimate consumers. It also known as marketing channels. The
channels members such as merchants agents wholesalers and retailers are middlemen in
distribution and they perform all marketing functions. These channels members such as
merchants agents wholesalers and retailers are middlemen in contribution and try perform
according to marketing functions. These middlemen facilitate the process of exchange and
create time, place and possession utilities through matching and sorting process. Sorting
enables meeting or matching the supply with consumers demand.
 Physical distribution: – it looks after physical handling of goods and assures maximum
customers services. It aims at offering of delivery of right goods at the night distribution
activities cover:
Order processing
Packaging
Warehousing
Transportation
Inventory control
Customer service.
All middle in distribution on performs these function and they assure putting the products
with in an arm’s length customer’s desire and demand.
CHANNEL OF
DISTRIBUTION
Functions of Distribution
Channels :
 In order to understand the importance of distribution channels,
you need to understand that it doesn’t just bridge the gap between
the producer of a product and its user.
 Distribution channels provide time, place, and ownership utility.
They make the product available when, where, and in which
quantities the customer wants. But other than these transactional
functions, marketing channels are also responsible to carry out
the following functions:
 Logistics and Physical Distribution: Marketing channels are
responsible for assembly, storage, sorting, and transportation of
goods from manufacturers to customers.
 Facilitation: Channels of distribution even provide pre-sale and
post-purchase services like financing, maintenance, information
dissemination and channel coordination.
FUNCTIONS OF DISTRIBUTION
CHANNELS- CONTD
 Creating Efficiencies: This is done in two ways: bulk breaking
and creating assortments. Wholesalers and retailers purchase large
quantities of goods from manufacturers but break the bulk by
selling few at a time to many other channels or customers. They
also offer different types of products at a single place which is a
huge benefit to customers as they don’t have to visit different
retailers for different products.
 Sharing Risks: Since most of the channels buy the products
beforehand, they also share the risk with the manufacturers and do
everything possible to sell it.
 Marketing: Distribution channels are also called marketing
channels because they are among the core touch points where
many marketing strategies are executed. They are in direct contact
with the end customers and help the manufacturers in propagating
the brand message and product benefits and other benefits to the
customers.
Thank You

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