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Functions of Distribution Channels
The distribution channels perfon the following functions
1. Market information-Channels of distribution can play a vital
ole in marketing searh. They can collect and disserninate vaniou
market infomations about potential and current customers,
competitos and other forces operating in market.
2. Promotion-Middlemen sometimes motivate and train a retailer's
sales staff. Retailers undertake local advertising, and special
demonstrations to promote product.
S. Customer services-Channel members provide various types of
services such as home delivery, repair,return of product, warranties
adn guaranteestobenefit the customers.
4. Product planning -Channel personnel provide advice
and existing products. They help in test marketing. They are also
helpful in properly positioning products against competitors and
suggesting which products to remove from the market.
5. Pricing--Middlemen often have a strong say in pricing decisions.
They stipulate their required markups, trade discounts and off
season discounts.
6. Distribution- -Channelmembers, assist in distribution activities
such as transporting, warehousing, customer contact and inventory
and stores management
7. Negotiation--Channel personnel attempt to reach fnal agreement
on price and other tens so that transfer of ownership or possession
can be effected.
8. Sorting-Sorting process consistsof accumulation, allocation,
and sorting. Accumulation is the wholesaler function of collecting
small shipments from severalproducers. Allocation is istributing
items to various consumer markets. Sorting is separating
merchandise into different grades, colours, and sizes. Channel
members perfom these functions.
9. Assorting -The retailers acquire a broad range of merchandise
so that the consumer is able to choose fromn different brands, price
ranges, andmodels.
10. Financing--Middlemen provide funds to finance inventories at
different levels of the marketing process.
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