What do you understand by distribution channel? How is it effective in modern business?

Distribution channels in marketing are one of the “4 Ps” (product, promotion, price, placement i.e. “distribution”). Distribution Channels are key element in marketing strategy — they help to expand business to end users and grow revenue. 

Types of distribution Channel

1.     Manufacturer to Customer

2.     Manufacturer to Retailer to Consumer

3.     Manufacturer to Wholesaler to Customer

4.     Manufacturer to Agent to Wholesaler to Retailer to Customer 

Wholesalers, resellers, retailers, and agents already have resources and relationship to quickly bring the product to market. If the company sells through these groups instead of (or in addition to) selling direct, the entire channel is to be treated group of customers as they are buying company’s product and reselling it. The company needs to understand their needs and deliver strong marketing programs in to maximize everyone’s revenue in the process.

A distribution channel is the chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. A distribution channel can include wholesalers, retailers, distributors and even the internet. Channels are broken into direct and indirect forms, with a "direct" channel allowing the consumer to buy the good from the manufacturer and an "indirect" channel allowing the consumer to buy the good from a wholesaler. Direct channels are considered "shorter" than "indirect" ones.

Thanks

Fully agree with answer given by Mr. Fazlur

Distribution channel is the way you reach your customers. Depending on your business model you have to choose how you want your products to be distributed and delivered to final customers. In terms of modern market - either you can deliver the products directly or through distributors.

The path through which goods and services travel from the vendor to the consumer or payments for those products travel from the consumer to the vendor. A distribution channel can be as short as a direct transaction from the vendor to the consumer, or may include several interconnected intermediaries along the way such as wholesalers, distributers, agents and retailers. Each intermediary receives the item at one pricing point and movies it to the next higher pricing point until it reaches the final buyer. Coffee does not reach the consumer before first going through a channel involving the farmer, exporter, importer, distributor and the retailer.

Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries.Distribution of products takes place by means of channels. Channels are sets of interdependent organizer (called intermediaries) involved in making the product available for consumption to end-user.Merchants are intermediaries that buy and resell products. Agents and brokers are intermediaries that act on behalf of the producer but do not take title to the products.

In modern business, in practice, many organizations use a mix of different channels; in particular, they may complement a direct sales-force who typically call on larger customers with agents who cover the smaller customers and prospects. In addition, online retailing or e-commerce is leading to disintermediation. Retailing via smartphone or m-commerce is also a growing area.The firm's sales &  marketing department needs to design the most suitable channels for the firm's products, then select appropriate channel members or intermediaries. The firm needs to train staff of intermediaries and motivate the intermediary to sell the firm's products. The firm should monitor the channel's performance over time and modify the channel to enhance performance.

Thanks for the invite. Distribution channels move products and services from businesses to consumers and to other businesses. Also known as marketing channels, channels of distribution consist of a set of interdependent organizations such as wholesalers, retailers, and sales agents involved in making a product or service available for use or consumption. In short, distribution describes all the logistics involved in delivering a company's products or services to the right place, at the right time, for the lowest cost. In the unending efforts to realize these goals, the channels of distribution selected by a business play a vital role in this process. Well-chosen channels constitute a significant competitive advantage, while poorly conceived or chosen channels can doom even a superior product or service to failure in the market.

Distribution channels in marketing are one of the classic “4 Ps” (product, promotion, price, placement a.k.a. “distribution”). They are a key element in your entire marketing strategy — they help you expand your reach and grow revenue.

Distrubution Channels add value by solving market separations or gaps, helping to make markets between buyers and sellers.

 

thanks

it is the communication way among employees

agree with answer given by Mr. Sashikanta Mohapatra 

 

Apologized for the answer, I do not know, leave the answer for the professionals.