accessed 9 october 2020 ]. B u s i n e s s F i n a n c e
Respond to peers in 175 words or more
Distributions channels are essential to meet marketing and sales goals. Having the correct distribution channels, the product will get to final consumers at the best value and efficient manner. Once a company is ready to sale a product, distribution channels are the avenues where products are sent to get to consumers. In order to achieve the correct way to manage a strategy, companies need to choose either direct or indirect distributions channels. The Kenton () website mentions that indirect channels are ways to get products to final consumer through wholesalers or retailers. And direct channels are the ones buyers have access to but product direct from manufactures. There are two details to these ways, one is that the direct channel will bring better pricing to consumers ands indirect pricing will increase price to consumers. The “rule” is that the most times an object or product is “touch” the more it will cost. Why? Well, the reason is that the more a product travels and gets load and unload the more cost is been add to it, and this will increment cost to final buyers.
Kenton, W. (). Investopedia, Business, Distribution Channel. https:// 2:
Location, location, location! This is a phrase that realtors are always using. Location plays a key role in the value of a property. This can be applied to the geographic location of your distribution channels as well. A company should carefully consider the geographic location from which they will be distributing. Based on a business’ geographic location, this will determine which distribution channel would be most affective in shipping out their product and who will be their audience. For example, if a company is located off the west coast in California, they would likely use boat as their means of transportation. Let’s say there’s a face mask manufacturing company that hit the jack pot when choosing their geographic location. Not only are they off the water, they are also only minutes from an airport and there is a trucking company based out of the same city. Everyone is wearing a face mask currently. They are sold worldwide. This face mask company could choose to use all three examples of distribution channels based on their location. Then on the other hand, there’s a company that’s way up in the mountains and the nearest town is 30 miles away. Not only is this a poor choice in geographic location, but it will also make distribution much harder and limit choices.
M, S., 2020. Factors Affecting Channels Of Distribution. [online] Art of Marketing – Learn the Art of Marketing from the Experts!. Available at: