Distribution channels are normally referred to as the pathways that the company uses in order to market its products. However, these channels may be divided into two for example direct channel of distribution, this type of distribution channel mainly targets the customers directly for example; the company directly deal with their customers through the internet, whereby it employs people as selling agents who sell and advertise their commodities through an e-commerce website directly.
Through this method, the company markets its commodities in a very safe, fast, and reliable means since the information reaches other companies especially due to the introduction and the increased use of technology, however, the company spends less through the advertisement. The other method is the indirect channel of distribution, it is a type of distribution channel whereby the organization targets the customers indirectly, for example, the company employs people to frequently visit certain companies and try marketing its products. Moreover, the indirect channel can include small companies such as sales agents, distributors to market its products.
Advantages of distribution channels
There are several advantages of these distribution channels. For example, distribution channels help in delivering goods and services to any customer or an organization. They also help customers or marketers to earn income through marketing systems such as vertical and horizontal.
Disadvantages of distribution channels
Apart from the advantages that distribution channels offer certain advantages are always experienced for example; when marketing using distribution channels conflicts sometimes arise whereby companies fight to supply the best services directly to their customers without considering the risks. Distribution channels in a way may affect the economy of a country since different companies and organizations always fight in trying to capture more of its distribution services.