Microsoft Word marketing doc

5.1 M
EANING AND 
F
UNCTIONS OF 
C
HANNELS OF 
D
ISTRIBUTION 
 
The word channel has its origin in the French word used for canal.
Channels are routes avenues, pathways suggesting movement or flow. 
Distribution means to distribute, diseminate or spread about. When these words 
are related to marketing, channels of distribution have been defined in different 
ways.
According to Richard Bushkirk – 
“distribution channels are the system of economic institutions through 
which a producer of goods delivers them into the hands of their users”. 
The American Marketing Association has defined distribution channel 
“as the structure of intra company organisation units and extra company agents 
and dealers, wholesalers and retailers through which a product or service is 
marketed”. 
According to William J.Stanton – 
“a channel of distribution for a product is the route taken by the title of 
the goods as they move from the producer to the ultimate consumer or industrial 
users. 

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According to Philip Kotler – 
“a channel of distribution is a set of independent organisations involved 
in the process of marketing a product or service available for use or 
consumption.” 
Thus, it is clear from the above definitions, that channels of distribution 
which also known as trade channels or marketing channels are the means 
employed by manufacturers and sellers to get their products to the markets in 
order to reach into the hands of users. 
Channel Management : 
In order to make the distribution system meaningful, the channel choosen 
must be used and managed effectively to achieve the desired marketing and 
organisation goals. The process of applying the management functions, i.e., 
planning, organising, staffing, directing and controlling in the trade channel is 
called as “Channel Management”. The channel is managed by the companies 
and its intermediaries.