distribution channel

A distribution channel is the network of individuals and organizations involved in the process of moving a product or service from the producer to the end user.

A distribution channel is the chain of individuals and organizations involved in getting a product or service from the producer to the consumer. Distribution channels are also known as marketing channels or marketing distribution channels. 

In this context, the individuals and organizations are known as intermediaries; channels are categorized according to the number of intermediaries between the producer and the end user. A direct marketing channel, for example, which has no intermediaries between the producer and the consumer, is known as a level zero channel. A distribution channel that has a single intermediary (typically, a retailer) is known as a level one channel. Level three and higher distribution channels have additional intermediaries, such as value-added resellers (VARs), system integrators (SIs) and distributors or wholesalers. The distribution channel is further broken down into component channels, such as the sales, product and service channels, each of which may consist of several intermediaries.

There are many factors to consider when selecting the appropriate distribution channel for a given product or service. A channel strategy is the plan a producer develops for distribution. 

This was first published in March 2013

Continue Reading About distribution channel

Glossary

'distribution channel' is part of the:

View All Definitions

Dig deeper on Channel business management strategies

Pro+

Features

Enjoy the benefits of Pro+ membership, learn more and join.

0 comments

Oldest 

Forgot Password?

No problem! Submit your e-mail address below. We'll send you an email containing your password.

Your password has been sent to:

File Extensions and File Formats

Powered by:

MicroscopeUK

SearchCloudProvider

SearchSecurity

SearchStorage

SearchNetworking

SearchCloudComputing

SearchConsumerization

SearchDataManagement

SearchBusinessAnalytics

Close