Distribution channels are used by companies to enter the consumer market with their product and there are two main types of distribution channels: Indirect channel and direct channel.
The definition of a distribution channel is a method that a company uses as a way of getting their products into the marketplace so that they can be purchased and used by consumers. The most traditional channel goes from the supplier to the manufacturer, to the distributer, the wholesaler and then finally to the retailer. This method has changed due to advancements in technology and the Internet to form the two main distribution channels that exist today: Direct and indirect.
A direct distribution channel is used when a company sells its products directly to the consumers. Although this method was not popular, it has experienced a significant increase due to the Internet. Companies out there who are needing to cut costs will often use a direct distribution channel in order to 'cut out the middle man'.
Methods of direct distribution include selling agents and Internet sales which are the two most commonly used methods. The Internet is a very easy distribution channel because of the fact that it is so easy for people to access it. Selling agents work for the company in question and market the company's products directly to customers.
An indirect method of distribution is used by companies who do not sell their products directly to consumers. The initial suppliers and manufacturers favor this method because of their early existence in the supply chains. Depending on the industry and product type, direct channels of distribution have appeared to become more widespread due to the rise of the Internet.
Examples of the most common indirect channels include distributors, wholesalers and retailers. Companies choose these methods in order to gain the best possible market share for their product. It also allows companies to focus purely on producing the goods and products whilst others take care of the other factors.
The definition of a distribution channel is a method that a company uses as a way of getting their products into the marketplace so that they can be purchased and used by consumers. The most traditional channel goes from the supplier to the manufacturer, to the distributer, the wholesaler and then finally to the retailer. This method has changed due to advancements in technology and the Internet to form the two main distribution channels that exist today: Direct and indirect.
A direct distribution channel is used when a company sells its products directly to the consumers. Although this method was not popular, it has experienced a significant increase due to the Internet. Companies out there who are needing to cut costs will often use a direct distribution channel in order to 'cut out the middle man'.
Methods of direct distribution include selling agents and Internet sales which are the two most commonly used methods. The Internet is a very easy distribution channel because of the fact that it is so easy for people to access it. Selling agents work for the company in question and market the company's products directly to customers.
An indirect method of distribution is used by companies who do not sell their products directly to consumers. The initial suppliers and manufacturers favor this method because of their early existence in the supply chains. Depending on the industry and product type, direct channels of distribution have appeared to become more widespread due to the rise of the Internet.
Examples of the most common indirect channels include distributors, wholesalers and retailers. Companies choose these methods in order to gain the best possible market share for their product. It also allows companies to focus purely on producing the goods and products whilst others take care of the other factors.
