This document discusses marketing channels and factors that influence the selection of distribution channels. It defines a marketing channel as the route taken by goods and services from a producer to the final consumer. It also lists the roles of distribution channels in marketing, such as providing information, promotion, physical distribution, and financing. Finally, it outlines factors that influence the selection of distribution channels, including product considerations, market considerations, middlemen considerations, and company considerations.

1. Marketing Channel
Dr. Gopal Thapa
Tribhuvan University
Kathmandu, Nepal
thapazee@gmail.com
04/23/17Copy right reserved: Gopal Thapa

2. Marketing Channel
A channel is the pipe line through which a product flows on its
way to the consumer.
Distribution channels are systems of economic institution
through which a producer of goods delivers them into the hands
of their uses.
--------------- R. Baskrick
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3. Marketing Channel
• Marketing channel can be viewed as set of
interdependent organizations involved in the
process of marketing a product or service available
for use or consumption.
• ------------------ Stern
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4. Marketing Channel
• A channel of distribution for a product is the route
taken by the title of goods as they move from the
producer to the ultimate consumer or industrial
user.
---------------Stanton
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5. Marketing Channel
• Marketing channel is the path or route taken by
goods or services as they move form producer to
final consumer.
• -------------- Dictionary of Marketing
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6. Role of Channel of Distribution
in Marketing
• Information
• Promotion
• Contact
• Matching
• Negotiation
• Physical Distribution
• Financing
• Risk Bearing
• Ordering
• Payment
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7. Factors Influencing the Selection of
Distribution Channel
• Product Consideration
• Market Consideration
• Middlemen Consideration
• Company Consideration
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8. Product Consideration
• Cost per unit
• Technical nature
• Product line
• Perishable product
• Size and weight
• Quality of product
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9. Market Consideration
• Quantity and position of customer
• Cash of credit sales
• Environment: govt. policy, legal provision,
pressure group
• Buying habit of consumer
• Consumer or industrial market
• Competition
• Nature of order
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10. Middlemen Consideration
• Comparative cost
• Service
• Capacity of middlemen
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11. Company Consideration
• Size of company
• Distribution objectives
• Management of company
• Financial Condition
• Goodwill of company
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