Functions of Channels of Distributions

Channels of distribution also known as marketing channels it is path or way which is traced in the direct or indirect transfer of the ownership of the product, it moves from the producer who produces the product for earning the profit and to the consumer who purchases the product to satisfy its needs for whom the product is composed of the utilities.

There are different functions of the channels of distribution that are followed to facilitate and provide products at door steps, the functions are described here below:

Assembling of the Goods:

The product is composed of so many parts which are produced or manufactured at different places the product is made up of those different parts now these products are assembled or gathered at one place and form those different parts one or single product is produced.

Physical Distribution

Goods are physically distributed place to place it is transported via automobiles to stores like warehouses where these are kept for further far placement of the products, on these warehouses there are certain standard which are necessary to be meet like temperature so it should not become harmful to product.

Marketing Information/ Research (Strength and Weakness):
One of the most important factor for the channels of the distribution is to research the market gather the information regarding the product, place, selling techniques, advertisement methods what fashion is adopted and what are the methods to attract the customers.

There are certain elements for what the company enjoys the more edge like any company is rich with the technological and innovative factors or any company has any edge for its flavors.


The work of finance can’t be ignored in this phase money is sometimes paid in advance as a loan they companies are financed by the different agencies to carry out its functions and for that favor the company is charged with the interest.

Grading and Mechanism of Demand and Supply

Grading meaning the categorizing of the product in which product is categorized like A B C and so on, in the market the equal balance of supply and demand must be maintained otherwise it can create inflation in the market as where at the market the demand for a product is high the supply should be according to the demand if there is a shortage in the supply the price for that product will go up as there will be huge number of buyer and less number of sellers.

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