What is a distribution channel What is distribution?

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Hello, distribution is a business term, in short, it is to provide products to customers in the right quantity, at the right time and on the right occasion. Its purpose is to provide customers with the utility of time, place, and possession. Distribution has two specific meanings:

1) Sales Allocation (2) Planned distribution to achieve good sales purposes.

What is Distribution?

<> Hello pro-mold cavity, distribution is a business term, in short, it is to provide products to customers in the right quantity, at the right time and on the right occasion. Its purpose is to provide customers with the utility of time, place, and possession. Distribution has two specific meanings:

1) Sales Allocation (2) Planned distribution of hail hands to achieve good sales purposes.

Enlightened heart] <>

Since the manufacturer does not necessarily deliver the product directly to the customer, there are some middlemen with different marketing functions between the manufacturer and the customer, and the product is delivered to the customer through the distribution channel, and different products will have different numbers and properties of the middlemen. In the process of different distribution stages, the added value of the product will increase.

The distribution channel is about getting products shipped in the right quantity, at the right time, and in the right place. Brick-and-mortar distribution channels are particularly well-suited to online marketing. The ability to place orders electronically and increase the speed of communication via the Internet has reduced the inefficiencies, costs and surpluses of marketing channels.

Type: 1. Direct distribution channel: Direct distribution channel refers to the producer directly to the consumer or user of the product, without the intervention of middlemen.

2. Indirect distribution channels: Indirect distribution channels refer to the use of intermediaries by producers to give goods to consumers or users, and intermediaries intervene in exchange activities.

3. Long channels and short channels: The length of distribution channels is generally divided according to the number of circulation links.

Fourth, wide channels and narrow channels.

The width of the channel depends on the number of intermediaries of the same type used in each link of the channel. There are many similar middlemen used by Qizaisheng Oak, and the products are widely distributed in the market, which is called wide channels.

Enterprises use fewer similar intermediaries, narrow distribution channels, called narrow channels, it is generally suitable for professional products, or valuable and durable consumer goods, by a middleman package, several distribution. It makes it easy for manufacturers to control distribution, but the distribution of the market is limited.

5. Single-channel and multi-channel: When all the products of the enterprise are sold by the store department directly set up by the enterprise, or all are handed over to the wholesaler for distribution, it is called a single channel. Multi-channel may be direct in the region and indirect in the field;

The differences between direct and indirect distribution channels are as follows:

1. Different definitions.

Direct distribution channel: refers to the distribution channel in which the producer directly delivers the goods to the final consumer.

Indirect distribution channel: refers to the channel through which the producer sells goods to consumers through the intermediate imitation link in the circulation field.

Second, the content is different.

Direct distribution channels: It is conducive to the communication of information between the production and demand sides, and can produce on demand to better meet the needs of target customers. Because it is a face-to-face sale, users can better grasp the performance, characteristics and usage methods of the product; Producers can directly understand the needs and purchases of users and the trend of fibrillation of key stoves, and then understand the advantages and disadvantages of competitors and changes in their marketing environment, creating conditions for on-demand production.

It can reduce the loss of products in the process of circulation. By removing the intermediate links in the circulation of goods, the loss of sales is reduced, and sometimes the circulation of goods can be accelerated.

Indirect distribution channels: Facilitate the wide distribution of products. The middleman is connected with the producer at the beginning of the commodity circulation and with the living person at the end point, which is conducive to adjusting the contradiction between production and consumption in terms of variety, quantity, time and space.

It is not only conducive to meeting the needs of the manufacturer's target customers, but also conducive to the realization of the product value of the manufacturer, and can make the product widely distributed, consolidate the existing target market, and expand the new market. Alleviate the shortage of producers' human, financial, and material resources. The middleman buys the producer's product and pays for it, which enables the producer to realize the value of the product in advance and start new funds.

The concept of distribution channels can be understood from three main points:

1. The starting point of the distribution channel is the producer, and the end point is the consumer or user. As a way for products to circulate, the sales channel must be connected to production at one end and consumption at the other end, and the products or services provided by producers will flow to consumers continuously through sales channels. In this process of circulation, there is mainly another kind of transfer:

Transfer of ownership of goods and transfer of entity of goods. These two transfers are both related and distinct from each other. The physical transfer of commodities is premised on the transfer of ownership of commodities, and it is also a guarantee for the transfer of ownership of commodities.

2. The distribution channel is a set of routes, which are organized and designed by the manufacturer according to the characteristics of the product, and in most cases, the channel strategy designed by the manufacturer fully considers its participants - intermediaries.

3. In the process of transferring products from producers to consumers, there are usually two forms of movement: first, the movement of the form of value as the result of buying and selling, that is, business flow. It is the transfer of ownership of a product from one owner to another, all the way to the consumer.

2. The spatial movement of all product entities that accompanies the flow of business, i.e., logistics. Business flow and logistics usually focus on the final realization of product value, forming a certain route or channel from production to consumers, which is a distribution channel from a marketing point of view.

It is a sales channel that can be classified as a type of customer group.