Significance of distribution channels in marketing | MIT School of Distance Education

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MIT School of Distance Education

• Significance of distribution channels in marketing

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• One of the most imperative components of
  marketing management is the distribution channel.
  A distribution channel refers to market
  intermediaries that are involved in the process
  of transfer of the goods from the producers to
  the consumers/end customers. The market
  intermediaries include wholesalers, distributors,
  authorized dealers, retailers, internet and
  franchise dealers.

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• An effective distribution channel is crucial for
  proper supply of goods and for minimizing the gap
  between the producer consumer. It tends to
  create time, place and possession utility of a
  product. As the industries and markets are
  growing rapidly, distribution is becoming more
  complex, so there is a high demand for the
  effective distribution channel.
• Lets find out various roles that a distribution
  channel plays in marketing

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It assists in stock holding

• Various market intermediaries involved in a
  distribution channel perform different functions
  like financing, risk bearing, product storage,
  etc. These help in effectual handling of the
  inventories.

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It provides products in required assortments

• Every market intermediary has its own
  proficiency. For example, the task of a producer
  lies in manufacturing/creating products, the
  wholesaler purchases those products in bulk and
  sells them in lesser quantities to the retailers
  while retailer expertise in selling products to
  end users. Due to the availability of an improved
  distribution channel, the products become easily
  available to the customers in their nearby
  stores. Thus, these intermediaries help in
  fulfilling the demand of the customers.

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It assists in executing price mechanism between
firm and customers

• Due to the presence of a distribution channel,
  the price of a product increases as it has to
  pass through various intermediaries. These
  intermediaries help to reach that price level
  where a producer is ready to manufacture a
  product and a consumer is ready to purchase the
  product.

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They assist in product merchandising

• Product merchandising plays a significant role in
  increasing the demand for a product.
  Merchandising is executed by the market
  intermediaries at a retail store to facilitate
  the movement of a product from the store to the
  customer. It basically involves an attractive
  display of a newly launched product to grasp the
  attention of potential customers. There are
  various other merchandising activities that help
  in effective selling of products in the store.

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It offers salesmanship

• A distribution channel not only involves
  wholesalers and retailers, but it also includes
  sales agents. The sales agents are sent directly
  by the companies to offer pre-sale and post-sale
  services to the customers. Through their
  salesmanship and direct customer contact, they
  can send true feedback to the producers about
  their newly launched products. In this way, they
  can improvise their upcoming products to improve
  their sales.

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• Thus Significance of Distribution Channels in
  Marketing is more. Clearly, distribution channel
  is the backbone of marketing. Thus, every
  marketing manager must know how to effectively
  communicate with intermediaries to ensure
  effective marketing as well as the sale of
  products. At MIT School of Distance Education
  (MIT-SDE), we just dont impart field-specific
  knowledge, but we also emphasize on imparting
  value-added skills in the candidates. 

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• We organize personality development sessions to
  ensure that future managers are effective
  communicators. We offer distance MBA equivalent
  course in Marketing Management to train the
  future marketers and entrepreneurs. Our course is
  up-to-date according to industry trends. So it is
  totally apt to capture the opportunities. When
  looking for the best in class correspondence
  MBA course, MIT-SDE should be your first and only
  option.

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• THANK YOU