What Are the Functions of Distribution Channel Marketing?

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According to TheManageMentor, the main functions of distribution channel marketing include information gathering, matching, promotion, developing contacts and negotiation for the sole purpose of providing a link between consumers and products. Information gathering involves assimilation and dissemination of market research, promotion involves development of persuasive communication, and matching involves meeting customer requirements by provision of the right product fit. Negotiation creates a win-win environment for buyers and sellers.

Experts at azcentral.com indicate that other functions of distribution channel marketing include breaking bulk through the use of wholesalers and retailers as agents between the manufacturers and final consumers. Consolidation and distribution are important functions of distribution channels because wholesalers can store large quantities of different products and deliver the same to retailers who stock numerous products from various manufacturers to make the products available to consumers. Distribution channels also facilitate functions such as maintenance and repair, offering credit to customers, accepting returned merchandise and advertising and promoting products through special sales, fliers and mass media adverts.

According to the Houston Chronicle, distribution channels also optimize sales volume, and they increase sales methods and locations adding to market presence. Some distribution channels have higher operating costs as compared to others and it is a business' duty to analyze all channels to determine which channels are most cost-effective to operations.