Distribution Channel, Functions Level

DISTRIBUTION CHANNEL AND THEIR FUNCTIONS
Distribution channel: Distribution is a set of interdependent organizations involved in the process of making a product or service availale for use or consumption by the consumer or business user. That means distribution channels mean who are taking duty to reach the product or service from the producer to final consumer. In the case of industrial market research the product from the supplier to industrial users.
Functions of distribution channel: The distribution channel notes goods and services from producers to consumers. It overcome the major time place and possession gaps that separate goods and services from those who would use them. Members of marketing channel perform the below key functions:
• Information
• Contract
• Promotion
• Matching
• Negotiation
• Physical distribution
• Financing
• Risk taking
They are summarized below:
• Information: Gathering and distributing marketing research and intelligence information about actors and forces in the marketing environment needed for planning and adding exchange.
• Contract: Finding and communicating with prospective buyers.
• Promotion: Developing and spreading persuasive communications about an offer.
• Matching: Shaping and fitting the offer to the buyer's needs including activities such as manufacturing, grading, assembling and packaging.
• Negotiation: Reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred.
• Physical distribution: Transporting and storing goods.
• Financing: Acquiring and leasing funds to cover the cost of the channel work.
• Risk taking: Assuming the risk of carrying out the channel work.
CHANNEL LEVEL: Channel level is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. Since producer and the final consumer both perform some work they are part of every channel. Channel level may customer marketing channel and business marketing channel.
• Customer marketing channel
Channel-1: Manufacturer-consumer
Channel-2: Manufacturer-retailer-consumer
Channel-3: Manufacturer-wholesaler-retailer-consumer
Channel-4: Manufacturer-wholesaler-jobber-retailer-consumer
• Business marketing channel
Channel-1: Manufacturer-industrial customer
Channel-2: Manufacturer-industrial distributor-industrial customer
Channel-3: Manufacturer-manufactser's representative or sales branch-industrial customer
Channel-4: Manufacturer-manufactser's representative or sales branch-industrial distributor-industrial customer