Marketing Management. Different Types of Distribution Channels

Seminar paper from the year 2011 in the subject Business economics - Trade and Distribution, grade: A, Prifysgol Cymru University of Wales, language: English, abstract: The present essay deals with the different types of distribution channels. Also, the importance for business companies is highlighted. The first part describes different distribution channels in general. The second part relates the distribution channel ¿Direct Marketing¿. Finally, the conclusion summarizes the results of the essay.

What is categorized as a channel of distribution is generally the route which goods are shipped from the manufacturers and then ultimately to the consumers. In a distribution network system, the producer places his product directly in the hands of actual users. The cycle of distribution involves the initial producer, the eventual buyer and any intermediaries ¿ to include a wholesaler or retailer.

A middleman is a term that refers to any company or individual in the cycle which either acquires rights to the goods, deals with price negotiations, or sells in the same capacity as an agent or broker. Facilitating agencies that assist in functions concerning marketing are not classified as middlemen in the cycle of distribution.