Channels of distribution

Meaning and definition: a major focus of channels of distribution is delivery. It is only through distribution that public and private goods and services can be made available for use or consumption. Producers of such goods and services are individually capable of generating only the form or structural utility for their products and services. They can organize their production capabilities in such a way that the products they have develop can, in fact, be seen, analyzed and sold in the market. The emergence and arrangement of a wide variety of the distribution oriented institutions and agencies, typically called arrangement of a wide variety of distribution because they stand between production on the one hand and consumption on the other, can be explained in the following terms:

1.       Intermediaries can improve the efficiency of the process.

2.       They help in the proper arrangement of routes of transactions.  

3.       They help in the proper searching process.

4.       They help in the proper sorting process.

Marketing channels are set of interdependent organizations involved in the process of making a product or service available for use or consumption.

According to the American marketing association, "a channel of distribution, or marketing channel, is the structure of the intra -company organization units and extra- company agents and dealers, wholesale and retail through which a commodity, product or service is marketed".

According to the P. Kotler, "every producer seeks to link together the set of marketing that best fulfil the firm's objectives". This set of marketing intermediates is called the marketing channel (also trade channel or channel of distribution)".

According to the William J. Stanton, "a channel of distribution or marketing channel for a product is the route taken by the title to the goods as they move from the producer to the ultimate consumers or the industrial user".

According to the Cundiff, Still and Govani, "marketing channel are the distribution networks through which producers, products flow to the market".

Posted Date: 9/19/2012 7:04:32 AM | Location : United States

Ask an Expert

Related Discussions:- Introduction to channels of distribution, Assignment Help, Ask Question on Introduction to channels of distribution, Get Answer, Expert's Help, Introduction to channels of distribution Discussions

Write discussion on Introduction to channels of distribution
Your posts are moderated

Write your message here..

Related Questions

Concentration approach for selecting target markets, What is Concentration ... What is Concentration Approach for selecting target markets? Concentration Approach: As an organization directs its marketing efforts in the direction of a single market

Environmental Apprisal, Why is environmental appraisal important for an org... Why is environmental appraisal important for an organization

Concrete math, Cribbage players have long been aware that 15 = 7 + 8 = 4 + ... Cribbage players have long been aware that 15 = 7 + 8 = 4 + 5 + 6 = 1+2+3+4+5. Find the number of ways to represent 1050 as a sum of consecutive positive integers. (The trivial rep

Discuss the implications of behavioural changes, Mauritius is an open econo... Mauritius is an open economy. The recent global financial crisis, world climatic changes impacting on food prices, and the strong demand from the BRIC(Brazil, Russia, India, and Ch

Advertising and marketing in rural areas, Question 1: Discuss why new m... Question 1: Discuss why new media will have to be created and conventional ones used differently to communicate with the rural consumer. Detailed explanation on ‘Advertis

Benefits of using the marketing concept in organisation, Question 1: a)... Question 1: a) Consider that you are the manager of a tourism or hospitality organisation. In this context, explain the benefits of using the marketing concept in your organisa

Why are bases for segmentation essential, Why are bases for segmentation es... Why are bases for segmentation essential? Bases for Segmentation: To develop a segmentation strategy the first step is to select the most appropriate bases on which to se

How will the manufacturers achieve customer loyalty, The motor car retail i... The motor car retail industry is one that is always facing numerous challenges. For car dealer businesses to survive, they must clearly demonstrate to consumers that they represen

Describe the term positioning of a firm or service, Courts opened its first... Courts opened its first retail outlet in Mauritius in 1985, on the outskirts of Port Louis. It subsequently opened outlets in all the towns and big villages. However inspite of its

Real option for pharmaceutical company, The management team of a four year ... The management team of a four year old pharmaceutical company in Boston is developing an immunization against malaria. The team has just learned from the FDC that is has passed sta