Nature/Characteristics of Channel of Distribution:
1. Route or pathway:
Channel of distribution is a route or pathway through which goods and services flow from the manufactures to consumers.
2. Flow:
The flow of goods and services is smooth and sequential and usually unidirectional.
3. Composition:
It is composed of intermediaries, such as, wholesalers, retailer, agents, distributors etc.,also called middlemen who participate in the flow voluntarily.
4. Functions:
The intermediaries perform such functions which facilitate transfer of ownership, title and possession of goods and services form manufacturers to consumers.
5.Remuneration :
The intermediaries are paid in the form of commission for the
services rendered by them. The same is compensated by the manufacturer in the form of commission allowed by the manufacturer or added in the price of the goods sold.
6.Time Unity :
As they bring goods to the consumers when needed.
7. Convenience Value:
As they bring goods to the consumers in convenient shape, unit, size, style and package.
8. Possession Value:
As they make it possible for the consumers to obtain goods with ownership title.
9.Marketing Tools:
As they serve as vehicles for viewing the marketing organisation in its external aspects and for bridging the physical and non-physical gaps which exist in moving goods from the producers to the consumers.
10. Supply Demand Linkage:
As they bridge the gap between the producers and consumers by resolving spatial (geographical distance) and temporal (relating to time)discrpancies in supply and demand.
1. Route or pathway:
Channel of distribution is a route or pathway through which goods and services flow from the manufactures to consumers.
2. Flow:
The flow of goods and services is smooth and sequential and usually unidirectional.
3. Composition:
It is composed of intermediaries, such as, wholesalers, retailer, agents, distributors etc.,also called middlemen who participate in the flow voluntarily.
4. Functions:
The intermediaries perform such functions which facilitate transfer of ownership, title and possession of goods and services form manufacturers to consumers.
5.Remuneration :
The intermediaries are paid in the form of commission for the
services rendered by them. The same is compensated by the manufacturer in the form of commission allowed by the manufacturer or added in the price of the goods sold.
6.Time Unity :
As they bring goods to the consumers when needed.
7. Convenience Value:
As they bring goods to the consumers in convenient shape, unit, size, style and package.
8. Possession Value:
As they make it possible for the consumers to obtain goods with ownership title.
9.Marketing Tools:
As they serve as vehicles for viewing the marketing organisation in its external aspects and for bridging the physical and non-physical gaps which exist in moving goods from the producers to the consumers.
10. Supply Demand Linkage:
As they bridge the gap between the producers and consumers by resolving spatial (geographical distance) and temporal (relating to time)discrpancies in supply and demand.
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