Channels of distribution are the sets of organizations that move goods from producers to ultimate consumers. To make a product or service accessible to consumers, the channels bridge time, possession, as well as place gaps. Each channel is a significant revenue stream. A marketing channel is the process of moving products or services from suppliers to customers. The marketing channel, also known as a distribution channel, involves a series of interdependent organizations.
A marketing channel is a group of interdependent organizations that help make a product available to consumers. It facilitates the transfer of ownership, specialization, and contact efficiency among the various members. For example, the Beistle Company manufactures Halloween decorations year-round, maintaining inventories year-round, overcoming seasonal and spatial discrepancies, and providing customer service throughout the year. For the Beistle Company, this marketing channel eases the transfer of ownership and provides a reliable source of supply.
Markets and consumers are dependent upon the availability of products and services. Marketing channels help businesses reach customers, maximize revenue, and build brand awareness. Channels can be direct interactions between a company and a customer or may involve several interdependent intermediaries, such as wholesalers, distributors, and retailers. They are vital to a company’s success in reaching its consumers. The producer must carefully plan a distribution channel that best suits its needs and preferences to reap maximum benefits from these channels.