CHANNELS OF

DISTRIBUTION

NAME:KAJAL SAINI
 INTRODUCTION
A channel of distribution is an organized net –
work or a system of agencies and institutions
which, in combination, perform all the
activities required to link producers with users
and users with producers to accomplish the
marketing task.
MEANING OF DISTRIBUTION
CHANNELS
A channel of distribution is a path –way
directing the flow of goods and services from
producers to consumers composed of
intermediaries through their functions and
attainment of the mutual objectives.
DEFINITION OF CHANNELS
OF DISTRIBUTION
ACCORDING TO PHILIP KOTLER,

“A set of independent organizations involved in

the process of making a product or services
available for use or consumption.”
ROLE AND IMPORTANCE OF
DISTRIBUTION CHANNELS
DISTRIBUTION EFFICIENCY TO MANUFACTURERS

OFFERS DIFFERENT QUALITIES PRODUCTS

ASSISTS THE SALESMANSHIP

HEPFUL IN MERCHANDISING

HELPFUL TO IMPLEMENT THE PRICE POLICIES

ENSURE PHYSICAL DISTRIBUTION EFFECTIVENESS

PROMOTE TRANSFER OF TECHNOLOGY

PRINCIPLES OF MARKETING
CHANNELS
The following principles are given by W.Alderson

1. The principle of minimum total transactions

2. The principle of smoothening gaps in assortment ad
sorting
3. The principle of routine
4. The principle of searching
5. The principle of amassed reserves
6. The principle of proximity
PATTERNS OF CHANNELS
CHANNELS OF
DISTRIBUTION

CONVENTIONAL
OR NON NON
INTEGRATED CONVENTON
AL OR
INTEGRATED

DIRECT INDIRECT

VERTICAL HORIZONTAL
 CONVENTIONAL OR INDIVIDUALITY
CHANNELS
The manufactures and the consumers are loosely linked by
intermediaries in the process exchange.

CONVENTIONAL CHANNELS ALTERNATIVE CAN BE:

1. MANUFACTURER TO CONSUMER
2. MANUFACTURER TO RETAILERS TO CONSUMER
3. MANUFACTURER TO WHOLESELLER TO RETAILER TO
CONSUMER
4. MANUFACTURER TO AGENTS TO WHOLESELLER TO RETALIER
TO CONSUMER

DIRECT CHANNEL: The company chooses to sell directly to consumers

without engaging any intermediary .
INDIRECT CHANNEL: The company employ the services of
intermediaries in moving the goods to consumers.
INTEGRATED CHANNEL SYSTEM
Integrated channels are networks in which channels components
participated in a co-oriented way.
There are two categories:
1.VERTICAL CHANNELS: These are professionally managed and
centrally programmed.
These are further classified into 3 categories :
a) ADMINISTERED VERTICAL DISTRIBUTION CHANNELS
b) CONTRACTUAL VERTICAL DISTRBUTION CHANNELS
c) CORPORATE VERTICAL DISTRIBUTION CHANNELS

2.HORIZONTAL CHANNRLS: These are those channels in which two or

more companies come together to exploit a new marketing
opportunity either by themselves or by incorporating a new business
unit. It is known as symbiotic marketing.