What are the distribution channels?

distribution channels consist of distributors, wholesalers, retailers, direct agents and online networks. The product or service manufacturer uses distribution channels for sale or delivery to the final consumer. There are channels of consumer and business marketing with several commonly used structures that include different levels. Companies usually rely on other businesses and organizations to get the product or service to the intended user. For example, food manufacturer uses several retailers to display and sell their products. The retailer is considered to be intermediaries in the manufacturer's distribution channel. When the mediator buys and assumes responsibility for the manufacturer's goods, they are considered traders. Agents are contact points in the pipeline looking for customers and can negotiate sales for manufacturers.

Company management decides on specific distribution channels,that will be used for the company's products. In the early stages of the company's development, a single strategy can be used to later divide into the hybrid channel. If a number of distribution strategies are combined, such as the use of an Internet platform to transport products directly to consumers, in addition to retail stores, the manufacturer uses a hybrid channel strategy. For example, Dell® manufacturer used this type of strategy by distributing selected models through the Walmart® retail retailer, while continuing to continue most of your product products.

There are four popular structures that companies use to model their strategies. The first is considered a channel at zero level, while the company sells directly to the end consumer. Many orders and telemarketer companies are considered a direct seller.

A single -level channel is where the companyHe uses a retailer to distribute his product. The manufacturer does not use any other intermediaries to transfer the product from the company's equipment. Rather, the product is sold directly to the retailer. Most direct delivery manufacturers (DSD) use this strategy.

Double -level and three -level channels of distribution include the use of wholesaler. A wholesaler buys a product from the manufacturer and then sells it to the retailer. In the three -level channel there is another mediator between the wholesale and Ton Retailer. Jobber purchases the manufacturer's product from a larger wholesaler and distributes it to smaller retail accounts.

In business marketing channels, the manufacturer is either sold directly to an industrial customer or uses a combination of industrial distributors and internal sales representatives. Sometimes the manufacturer uses the company's business branch directly to the business customer. In another arrangement, the company's sales representative will sell the product directly to the distributor who prodUKT sells to a real customer.