Channels of Distribution
The word channel might bring to mind a waterway such as the English Channel, where ships move people and cargo. Or it might bring to mind a passageway such as the Chunnel, the railroad tunnel under the English Channel. Either image implies the presence of paths or tracks through which goods, services, or ideas flow. This imagery offers a good starting point for understanding channels of distribution.
The term marketing channel was first used to describe trade channels that connected producers of goods with users of goods. Any movement of products or services requires an exchange. Whenever something tangible (such as a computer) or intangible (such as data) is transferred between individuals or organizations, an exchange has occurred. Therefore, marketing channels make exchanges possible. How do they facilitate exchanges? Perhaps the key part of any distribution channel is the intermediary. Channel intermediaries are individuals or organizations who create value or utility in exchange relationships. Intermediaries generate form, place, time, and/or ownership values between producers and users of goods or services.
Marketing channels were traditionally viewed as a bridge between producers and users. However, this traditional view fails to fully explain the intricate network of relationships that underlie marketing flows—the exchanges of goods, services, and information.
This is a free page. This page contains 201 words. This
article contains 3,115 words (approx. 10 pages at 300
words per page).
Read the rest of this Article with our Channels of Distribution Access Pass.
