Calcutta Institute Of Engineering &

Management
Student Name: Md Farhan Afzal Khan
Roll No: 16500922018
Registration No: 221650710025
Paper code: MM302
Eaxm: CA1
Topic On: Types Of Distribution Channel In Marketing
 Types Of Distribution Channel In Marketing
Distribution Channel:
• A distribution channel is a path by which all goods and services travel to arrive at the intended consumer.
Distribution channels can be short or long, and depend on the number of intermediaries required to
deliver a product or service.
• Distribution channels include agents, wholesalers, retailers, distributors also.
• In a direct distribution channel, the manufacturer sells directly to the consumer. Indirect channels involve
multiple intermediaries before the product ends up in the hand of the consumer.
• It creates the utilities of time, place & possession by bridging the gap between the point of production &
the point of consumption.

Components Of Distribution Channel:

1. Producer
2. Agents
3. Whole sellers
4. Retailers
5. Distributers
6. End customer
 Types Of Distribution Channels
• Direct: A direct channel allows the consumer to make purchases from the
manufacturer. This direct, or short channel, may mean lower costs for
1 consumers because they are buying directly from the manufacturer.

• Indirect: An indirect channel allows the consumer to buy the goods from a
wholesaler or retailer. Indirect channels are typical for goods that are sold
2 in traditional brick-and-mortar stores.

• Hybrid: Hybrid distribution channels use both direct channels and indirect

channels. A product or service manufacturer may use both a retailer to
distribute a product or service and may also make sales directly with the
3 consumer.
Types Of Distribution Channel Levels
• The manufacturer and the client have a close and
LEVEL 0 direct relationship at this level. For the company,
the relationship costs with the consumer are
higher.

• The manufacturer sells the products to the

LEVEL 1 distributor, who might sell them to consumers via
retailers or wholesalers.

• Level 2 is similar to level 1. The difference is that

LEVEL 2 the distributor delivers products only to retailers,
who sell them to consumers.

LEVEL 3 • Level 3 channels are a traditional distribution model .

 Importance Of Distribution Channel
• Distribution channels ensure that products are delivered to customers on time.
This is important because customers can get unhappy if products are unavailable
when needed. 
• Distribution channels remove distance barriers for businesses. This means
businesses can serve customers who are far away.
• Distribution channels play a crucial role in keeping enough products in stock. They
store products in warehouses and supply them as per market demand. This helps
prevent shortages of goods in the market.
• Businesses use distribution channels to get important market information. They
learn about things like demand, price, and competition from the intermediaries in
the channel. Customers also give feedback and suggestions, which helps
businesses make good decisions and plan their strategies.
• Distribution channels promote products by using intermediaries who inform
customers about the products. These intermediaries introduce new products and
explain their features to customers, motivating them to buy. As a result,
distribution channels play an important role in the efficient marketing and
promotion of goods.