A channel of distribution refers to a path or route that a good or service takes in order to reach the hands of the ultimate

consumer. In other words, it

is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. Distribution channels in
marketing are a key element in the entire marketing strategy. It helps the business in expanding its reach and grows its revenue.

A channel of distribution or marketing channels are the distribution networks through which producers’ products flow to the market. — Cundiff, Still
and Govoni
This is a route taken by the title to the goods as they move from producer to the ultimate consumers or industrial users. —William J. Stanton

There are various functions of distribution channels:

(i) Transfer of title of the goods involved.
(ii) Physical movement from the point of production to the point of consumption.
(iii) Storage function.
(iv) Communication of information concerning the availability, characteristics and price of the goods in transit, inventory and on purchase.
(v) Most of the utilities of products are created by performing the function of physical distribution promptly and efficiently.
(vi) Transactional function like buying from the manufacturer and selling to the consumer.
(vii)Storing the goods and sorting them into quantities desired by customers.
(viii) Channels of distribution also conduct marketing research and gather data on market conditions, expected sales, consumer’s trends, competition
etc. Thus giving valuable information to the manufacturer.
(ix) Distribution channels help in maintaining the price too. By stocking the goods, a constant flow of goods to the market is assured. This equalizes
the demand and supply factors which stabilize prices.

Channels of distribution are very important for any firm because of the following:
(i) Distribution channel is an important element of marketing mix of a firm and other elements are closely related with interdependence on the
distribution channel. Other marketing decisions like pricing, promotion and physical distribution are highly affected by this.
(ii) A sound distribution channel enables the firm to cut down cost and maximize its sales volume.
(iii) The cost involved in the use of distribution channels adds up into the price of the product that the ultimate customer has to pay. Thus it is
important to choose the distribution channel wisely.
(iv) A product or service is really useful to the consumer only when it is available at the right time and at the right price. Distribution channels ensure
this.
(v) Due to right distribution channels fluctuations in the production can be reduced which ensures steady employment and proper budgetary control.