What is a distribution channel and what are its types?

The distribution channel is to make products delivered in the right quantity at the right time and place. Physical distribution channels are particularly suitable for online marketing. The ability to make electronic orders and improve communication speed through the Internet reduces the inefficiency, cost and surplus of marketing channels.

Type:

1. Direct distribution channel: Direct distribution channel means that producers directly supply products to consumers or users without the intervention of middlemen.

Second, indirect distribution channels: indirect distribution channels refer to producers using middlemen to supply goods to consumers or users, and middlemen participate in exchange activities.

Third, long channels and short channels: the length of distribution channels is generally divided according to the number of circulation links.

Fourth, wide channels and narrow channels.

The width of a channel depends on the number of mediations of the same type used in each link of the channel. There are many similar middlemen used by enterprises, and their products are widely distributed in the market, which is called wide channels.

Enterprises use fewer similar middlemen and narrow distribution channels, which is called narrow channels. Generally applicable to professional products or expensive and durable consumer goods, which are contracted by a middleman and distributed by several dealers. It makes it easy for manufacturers to control distribution, but the market distribution is limited.

V. Single channel and multi-channel: When all the products of an enterprise are sold by its own direct sales department or handed over to wholesalers for distribution, it is called single channel. Multi-channel can adopt direct channel locally and indirect channel in other places;

Extended data

The functions of distribution channels mainly include:

1, research, that is, collecting information necessary for planning and communication;

2. Promotion, that is, designing and disseminating information about commodities to encourage consumers to buy;

3, contact, that is, to find and determine potential buyers for manufacturers, and communicate with buyers;

4. Coordination, that is, adjusting the supplied products according to the requirements of the buyer, including grading, classification, packaging and other activities;

5, negotiation, that is, on behalf of the buyer or seller to participate in the negotiation of prices and other trading conditions, in order to facilitate the signing of the final agreement and realize the transfer of product ownership;

6. Logistics, that is, storing and transporting products;

7. Financing, that is, raising and dispersing funds to pay part or all of the expenses required for distribution;

8. Take risks, that is, take all risks related to channel work.

Baidu Encyclopedia-Distribution Channel