Two aspects involve in distribution function, they are marketing channel and physical distribution.
1. Marketing channels
The relation network among persons, business firms, organizations etc involved in the process of ownership transfer of any product is called marketing (distribution) channel. Under this include producers, different level intermediaries (distributors, agents, dealers, wholesalers, retailers etc.) and consumers.
In the process of making flow of products from producer to final customers, different legal and financial activities need to be performed. So, banks, financial institutions, insurance companies also include in marketing channel. As different promotional activities are done to motivate all the persons and institutions involved in distribution process,this aspect of distribution is also called ' channel motivation'.
In the process of making flow of products from producer to final customers, different legal and financial activities need to be performed. So, banks, financial institutions, insurance companies also include in marketing channel. As different promotional activities are done to motivate all the persons and institutions involved in distribution process,this aspect of distribution is also called ' channel motivation'.
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2. Physical distribution or marketing logistics
The activity related with physical inflow of goods is called physical distribution or marketing logistics, Transport, warehouse management, inventory management, order processing, material handling etc. are the main activities involved in physical distribution. This is very important aspect of distribution function.
