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What Are Marketing Channels & Intermediaries?

What is a 'Distribution Channel'

❶However, in the late 20th century, Japanese wholesalers declined in importance. About the Author A published author and professional speaker, David Weedmark has advised businesses on technology, media and marketing for more than 20 years.

BREAKING DOWN 'Distribution Channel'

Management of channel systems
Distribution Pathways
Channel functions and flows

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These intermediaries, such as middlemen (wholesalers, retailers, agents, and brokers), distributors, or financial intermediaries, typically enter into longer-term commitments with the producer and make up what is known as the marketing channel, or the channel of distribution.

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Channel intermediaries also provide transactional, logistics and facilitating functions, such as physical distribution, inventory storage and sorting. Learning Outcome. At the end of this lesson, you'll understand how channel intermediaries function and their importance in physical distribution strategies.

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Intermediaries in a distribution channel provide services that enable manufacturers to reach different types of customers. A channel might include a number of intermediaries, such as agents, wholesalers, distributors and retailers. Individual or firm (such as an agent, distributor, wholesaler, retailer) that links producers to other intermediaries or the ultimate buyer. Distribution intermediaries help a firm to promote, sell, and make-available a good or service through contractual arrangements or purchase and resale of the item.

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A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors and even the internet. Two Intermediary Levels Channel: In this distribution channel two intermediaries are involved which are wholesaler and retailer. Most small producers of Drugs, hardware and food items use this distribution channel. Three Intermediary Levels channel: Meat Industry uses this type of distribution channel in which the meat is delivered to the wholesalers by the producer.