The Nature of Distribution Channels

Most producers use third parties or intermediaries to bring their products to market. They try to forge a distribution channel - a set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user.-' The channel of distribution is therefore all those organizations through which a product must pass between its point of production and consumption.4

distribution channel (marketing channel)

A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or industrial

Figure 21.1

How a distributor reduces the number of channel transactions and raises economy of effort

Was this article helpful?

0 0
Salehoo Secrets and Tips

Salehoo Secrets and Tips

As with any web site, SaleHoo has a number of features that will help you in buying products from around the world. Once you have an account on SaleHoo, which only costs a one-time fee, you can establish up to twenty named searches for products. After that, any time those items become available, you’ll be alerted.

Get My Free Ebook


Post a comment