Service Distribution

Role of Distribution Channel

Spatial Helps reduce the distance between
the producer and the consumer

Temporal Helps speed up in meeting the

requirement of the consumer

Break Bulk Reduces large quantities into

acceptable lot sizes for the consumer

Assortment Provides variety to the consumer to

choose from

Financial Support Helps fund the activities of reaching

the product to the consumer
Channel Flows Possible
Producer Driven Seller Driven Service Driven Others

Company owned Existing retailers C&F agent M-Level marketing

Licensed Outlet Franchises Transporters Co-operative

societies

Brokers Modern store Warehouse owners Vending machines

formats

Franchises Specialty stores Couriers Catalogue shopping

Distributors Discount stores Financing Internet based

Companies sellers

Agents, dealers Third Party Logistics

Sales People Internet based

sellers
Channel Flows
Physical Possession Transportation & storage of the product in order to
physically deliver the product to end-user
Ownership Taking title and risk associated

Promotion Promoting in terms of advertising, displaying, giving

information, etc.
Negotiating Agreement of trade with upstream and down stream
entities
Financing Taking care of financial requirements

Risk taking Underwriting the risks associated with the service

failures
Ordering Receiving orders and consolidation

Payment Management of Financial Transactions