Do you by any chance know about distribution channels and plan to leverage them in your digital marketing campaigns? Maybe you’re coming across this term for the first term and have no idea what they entail?
If the answer to any of these questions is yes, then you have definitely come to the right place. In this article, we let you understand distribution channels what they are, types and examples, you should know before deciding on anything. Read on below to uncover more!
What is a Distribution Channel?
Before delving deeper into our discussion topic today, it pays off to understand what you’re dealing with in the first place. To cut a long story short, a distribution channel is simply the network of individuals and organizations involved in getting a product or service from the producer to the customer. Distribution channels are also known as marketing channels or marketing distribution channels.
Different Types of Distribution Channels
By now you should be aware of the sheer fact that there are three different types of distribution channels you should know about i.e., direct, indirect, and hybrid. Understanding what each type entails will certainly help you choose the ideal one for your needs.
With the direct channel, the company sells directly to the customer. For instance, a brewery that brews its own beer and sells it to customers at its own physical location employs a direct channel of distribution. After all, they deliver the product or service directly to customers.
Things tend to be different with indirect channels since it uses multiple distribution partners or intermediaries to distribute goods and services from the seller to customers. Indirect channels can be configured in different ways including single-tier and two-tier distribution model.
Hybrid channels, on the other hand, combine the traits of direct and indirect channels. The seller uses both direct and indirect methods. For instance, a manufacturer might sell an item on its eCommerce website, but then an intermediary delivers the physical product to the customer. The customer still has a direct interaction with the seller, but an intermediary is also involved.
It is in your best interest to spend some time understanding what are distribution channels, examine the different types available and look into the said examples. Equipped with this vital information, you will certainly have an easy time when you decide to get going.
