Functions of distribution channels

1. MARKETING
MANAGEMENT

2. FUNCTIONS OF
DISTRIBUTION CHANNELS

3. Functions of Distribution Channels
FUNCTIONS
• Sorting
• Accumulation
• Allocation
• Assorting
• Product
Promotion
• Negotiation
• Risk Taking

4. Functions of Distribution Channels
 Sorting
• Middleman procures the supplies of goods from a variety of
sources, which is often not of the same quality, nature and
size.
• Then sorts the goods into homogeneous groups on the
basis of size or quality.

5. Functions of Distribution Channels
 Accumulation
• Involve accumulation of goods into larger
homogeneous stocks, which help in maintaining
continuous flow of goods.

6. Functions of Distribution Channels
 Allocation
• Breaking homogeneous stock into smaller,
marketable lots.

7. Functions of Distribution Channels
 Assorting
• Middlemen procure variety of goods from different
sources and deliver them in combinations desired
by the customers.

8. Functions of Distribution Channels
 Product Promotion
• The middlemen advertise the products kept with them.
• They also do certain sales promotion activities
like demonstrations, special displays etc. to increase the
sale of products.

9. Functions of Distribution Channels
 Negotiation
• They negotiate and try to reach agreement on
price & other terms of sale.

10. Functions of Distribution Channels
 Risk Taking
• In the process of distributions of goods , the
merchant middleman takes title of the goods &
thereby assume risks on account of price, demand
fluctuations, spoilage, destination etc.

11. Functions of Distribution Channels
 Question & Answer
• What is sorting?
• What is accumulation?
• What is negotiation?

12. Functions of Distribution Channels
 Follow up Activity
• Present seminar on the topic channels of
distribution.
• Identify a famous wholesale merchant in your
locality and observe whether these functions are
performed by him and how he manages to do it.