Channels of Distribution

Meaning & Definition

A distribution channel is an important part of every company’s downstream supply chain. A company’s total marketing plan for promoting, pricing, and selling a product to consumers includes distribution channels. The consumer’s payments to the corporation are also reflected in the supply chain through intermediaries.

Distribution routes can be long and involve many intermediates, or they can be short and involve few intermediaries. The distribution’s length and breadth may be determined by the logistics and time required to reach an end customer.

A long channel may take longer to reach the consumer, reduce margins, and take longer to complete payments.

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