Luwam is convinced that her product idea has great potential. She has decided to produce the product herself, but will use other companies who specialize in storing and transporting products to help her move the product from where it is manufactured to the final consumer. These specialists Luwam uses will be part of her:

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22-07-2022
Business

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Luwam is convinced that her product idea has great potential. She has decided to produce the product herself, but will use other companies who specialize in storing and transporting products to help her move the product from where it is manufactured to the final consumer. These specialists Luwam uses will be part of her:

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tutorconsortium203 tutorconsortium203 · Answer 1 · 2022-07-29T18:48:05+02:00

Luwam is convinced that her product idea has great potential. She has decided to produce the product herself, but will use other companies who specialize in storing and transporting products to help her move the product from where it is manufactured to the final consumer. These specialists Luwam uses will be part of her: "channel of distribution".

What is channel of distribution?

A product or service could travel down a distribution channel to reach the market. A corporation can sell to customers directly through a direct distribution channel, which is typically a website or physical store.

Some characteristics of channel of distribution are-

A distribution channel is a network of businesses or middlemen where the final consumer buys a product or service.
Wholesalers, retailers, distributors, and the Internet are examples of distribution channels.
The manufacturer sells directly to the customer through a direct distribution channel. Before the product reaches the customer, indirect routes use a number of middlemen.
The product, promotion, and price are other components of a company's marketing plan, which also includes a distribution channel, usually referred to as placement.

Therefore, the length of a distribution channel depends on how many middlemen are needed to distribute a good or service.

To know more about the distribution channel, here

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