In marketing, any distribution channel has three main characteristics: its levels, width and length:
Length is the number of intermediaries in the distribution chain (its links).
Width is the number of participants within each such section. For example, if a company sells its products in three retail chains, then this indicator of its distribution channel is three.
And finally, a level is called each vnpay database intermediary in the distribution and sales chain that somehow participates in the movement of goods to the consumer.
For example, a manufacturer sells cars through a single intermediary – a specialized showroom. The length of the channel is equal to one, the width is also equal (after all, all cars are sold in one place). This showroom is counted as the only level in a single-level sales channel.
In addition to these three parameters, the functions of each link in this chain and the specifics of their interaction with each other play a huge role.
In marketing, the following classification of distribution channel functions is adopted:
Research : gather information about the market.
Sales promotion : to encourage the consumer to purchase as many products as possible.
Contact : to form and maintain feedback with clients. You can use the most effective methods to take contacts from the client .
Negotiations : agree and change sales conditions (service, cost, packaging), approve them.
Organization : ensure the movement of goods along the chain (in fact, these are purely logistical tasks - load, transport, store in warehouses).
Finding finance : finding money to offset distribution costs.
Risks : assume full responsibility for the movement of goods through the distribution channel.
Thus, the sale of products occupies a significant place among the business processes of any enterprise. Having dealt with the terminology, let us now consider the types of distribution channels of the organization.
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Alexander Kuleshov
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