What is Distribution Channel | Types of Distribution Channel | Distribution Channel explained

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SimplyInfo

SimplyInfo

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From this video you will learn What is Distribution Channel & how it works, Types of Distribution Channel, Advantages of Direct Channel, Disadvantages of Direct Channel Advantages of indirect Channel, Disadvantages of indirect Channel for beginners in english.
Distribution Channel:
A distribution channel is the flow or a network that a good or service follows from production or manufacturing until it reaches the final consumer or buyer. The distribution channels are part of a downstream supply chain which is oriented towards reaching out the ultimate consumer.
Types of Distribution Channel:
Direct
Indirect
Direct:
When the distribution channel is “direct”, the manufacturer is selling the goods or services directly to the consumers or the end users without a middleman also known as intermediaries.
For example : Goods sold under the traditional brick and mortar stores are part of the direct channel.
Advantages of Direct Channel:
Eliminates Intermediary expenses
Increases direct customer contact
Provides more control
Higher profit margins
collect valuable marketing data
Disadvantages of Direct Channel:
warehouse management
time consuming and costly
distribution channel options
Indirect:
When the distribution channel is “indirect”, the product changes hands several times between the intermediaries before reaching the end user or the consumer.
There are 3 different types of indirect channels:
One level channel
Two level channel
Three level channel
Advantages if indirect Channel:
Share shipping and the storage costs.
It makes easier for customers to find the products.
Benefit from the third party’s experience, infrastructure and salesforce
Faster expansion
Disadvantages of indirect Channel:
distance it creates between the manufacturer and the customer
establish brand loyalty
decreases the profit margin
Making the right choice:
Distribution channels may vary depending on the particular manufacturer’s product type and their sales targets.
• Market characteristics
• Product characteristics
• Competitor characteristic
• Company characteristics
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#DistributionChannel, #TypesofDistributionChannel, #Simplyinfo,
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Пікірлер: 4
@mamathamamatha5462
@mamathamamatha5462 Жыл бұрын
Nice information sir.☺
@rathirathi9936
@rathirathi9936 2 жыл бұрын
Thank you 🤗
@rubinsrecipes655
@rubinsrecipes655 2 жыл бұрын
Thanks ❤
@ronex8315
@ronex8315 2 жыл бұрын
i dont understand the significance of an agent could u explain that?
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