Distribution Channels

Aleksandr Martiushev, Henry Hallila, Dmitrii Stepin

Definition

Distribution channel is chain of businesses or

intermediaries through product passed until it
reaches final customer or buyer.

Source: https://www.investopedia.com/terms/d/distribution-channel.asp
 Types
Direct Channel Indirect Channel Hybrid Channel

It is the shortest and Distribution of goods is Multi-channel or

simplest channel of performed Hybrid Channel occurs
direct distribution of by middlemen or when a single
goods from intermediaries like organization sets up
manufacturer to wholesalers’ stockiest several marketing
customers. distributions. channels to reach one
or more customer
segments. The use of
hybrid channel systems
has increased greatly in
recent years.
Source: https://www.economicsdiscussion.net/distribution-channel/types-of-distribution-
channels/31760
 Movement of goods

Management of goods

Distribution Closing the gaps in time, place and possession of

channel
goods

Forward flow of activites (storage and

function communication)

Backward flow of activities (ordering and payment)

Flow into both direction (information, risk taking,

finance, negotiation)

(Kotler & Keller, 2015)

References

• Kotler, P. and Keller, K., 2015 Marketing management.

• Types of distribution channels. Available
at: https://www.economicsdiscussion.net/distribution-channel/types-
of-distribution-channels/31760 . Accessed on 6.02.2021
• Distribution channels. Available at:
https://www.investopedia.com/terms/d/distribution-channel.asp .
Accessed on 6.02.2021