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What are Channels of Distribution?

In the Business Buying Behavior Tutorial, we describe a supply chain as consisting of all parties and their supplied activities that help a marketer create and deliver products to the final customer. For marketers, the distribution decision is primarily concerned with the supply chain’s front-end or channels of distribution that are designed to move the product (goods or services) from the hands of the company to the hands of the customer. Obviously when we talk about intangible services the use of the word “hands” is a figurative way to describe the exchange that takes place. But the idea is the same as with tangible goods. All activities and organizations helping with the exchange are part of the marketer’s channels of distribution.

Activities involved in the channel are wide and varied though the basic activities revolve around these general tasks:

  • Ordering
  • Handling and shipping
  • Storage
  • Display
  • Promotion
  • Selling
  • Information feedback
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5 Comments

  1. sue makes this comment

    October 28, 2011

    This was very informative and helpful. Thank you.

  2. Mike makes this comment

    June 05, 2011

    Thanks for this. It really helped me with my business assignment for school.

  3. marsh makes this comment

    March 21, 2011

    This information on channels of distribution was very useful in our class test thanks.

  4. hari makes this comment

    October 05, 2010

    Its very useful in guiding management students, particularly in the field of marketing. Thank you.

  5. Manvendra makes this comment

    March 05, 2010

    Site provides very practical information of marketing. A few more topics could be added.

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