Question 8 :
The functioning of a distribution
channel is explained under the
production concept as
the practice of linking manufacturers
with customers by a middleman
the practice of adding quality and
other features to the product
the practice of adding retail outlets
to the existing distribution channel
the practice of using maximum
number of distribution channels
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functions of channel distribution
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Functions of channels of distribution smoothen the flow of products by making possession, place and time utilities.
Some vital functions performed by them are:
- Sorting It refers to the method of sorting the merchandise into consistent teams on the premise of size, quality, options and price.
- Accumulation refers to the process of accumulation of goods into larger homogeneous stocks. This helps to keep up a nonstop flow of supply.
- Allocation It involves breaking homogeneous stocks into smaller, marketable lots. This helps in making sales simply per the different needs of numerous buyers.
- Assorting It refers to the method of mixing various merchandise of a similar line of product, available to customers cherish a cricket kit containing a bat, a ball, gloves, wickets, stumps, helmet and leg guards.
- Product promotion Middlemen help with the promotion of a product by organising demonstrations, displays, contests, promotional events, etcetera This helps in increasing the sale of products.
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