channel of distribution

business

Also known as: distribution channel, marketing channel

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Last updated

June 24, 2026

Quick Summary

A channel of distribution refers to the path taken by a product from its origin to the final consumer. This path often involves intermediaries like wholesalers, retailers, agents, and brokers, who facilitate the transfer of title and the physical movement of goods.12

Producers may choose to sell directly to consumers or utilize these intermediaries to perform essential functions. The structure of a distribution channel can vary, with some being direct and simple, while others are long and complex, especially in international markets. The design of a channel is influenced by the desired level of service for the target consumer, considering factors such as delivery time, product variety, and accessibility. Intermediaries are crucial because they often offer greater efficiency and specialized expertise in making products widely available.234

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marketing
Place
…said to be following a channel of distribution. For example, the channel of distribution for many food products includes food-processing plants, warehouses, wholesalers, and supermarkets. By using this channel, a food manufacturer makes its products easily accessible by ensuring that they are in stores that are frequented by those in…
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…said to be following a channel of distribution. For example, the channel of distribution for many food products includes food-processing plants, warehouses, wholesalers, and supermarkets. By using this channel, a food manufacturer makes its products easily accessible by ensuring that they are in stores that are frequented by those in…
Read More

marketing
Marketing intermediaries: the distribution channel
…the marketing channel, or the channel of distribution. Manufacturers use raw materials to produce finished products, which in turn may be sent directly to the retailer, or, less often, to the consumer. However, as a general rule, finished goods flow from the manufacturer to one or more wholesalers before they…
Read More
…the marketing channel, or the channel of distribution. Manufacturers use raw materials to produce finished products, which in turn may be sent directly to the retailer, or, less often, to the consumer. However, as a general rule, finished goods flow from the manufacturer to one or more wholesalers before they…
Read More