Distribution channels are the most important aspect of the marketing strategies involved in a product or service. They will help the business to reach their customers more effectively and maximize revenue and improve brand reputation.
A distribution channel or marketing channel is the path taken by a business for delivering its products and services to its customers. The path may either be a direct contact by the company to the customers or through intermediaries like retailers, wholesalers, distributors, etc.
What Are The Functions Of Distribution Channels?
Distribution channels are responsible for the storage, assembly, sorting, and transportation of products from the manufacturers to the customers. They also provide pre-purchase and pre-sale services. Creative efficiency is another major function of the distribution channel.
Retailers and wholesalers buy products from the manufacturers in bulk and sell the products in small quantities, few at a time. Another benefit is that they also offer multiple products in a single place so that customers do not have to go to different retailers to buy different products.
What Is Direct Channel Of Distribution?
Direct channel of distribution or direct selling is the oldest form of selling products. It is the major kind of distribution channel of a small distribution business. The main feature of a direct channel of distribution is that there will be no intermediary involved; the manufacturers distribute the products directly to the customer.
Types Of Direct Channels Of Distribution
This involves the manufacturer hiring a traveling salesman to sell their product. The traveling salesmen will go out to the customers directly and try to sell the products on the spot. If the product is portable, the salesmen will carry it with them and if it is not portable, the manufacturers have to arrange for its delivery as soon as the sale is closed.
It is one of the oldest and most relevant direct channels of distribution. The customers will place their orders through mail, phone, or internet and the manufacturers then deliver the products through courier or a payable post.
Chain Store Sales
Big businesses can open retail stores in different regions for selling their products directly. Small manufacturers can afford only a single chain store in an area, while large manufacturers will have numerous retails stores all across the world.
This is the newest and the most effective direct channel of distribution. Online selling allows you to sell your products to customers all around the world through the internet. You can have your own website and the customers can place the order on the website. You can then ship the goods via mail or your own delivery system.