Question

Write a long note on channel of distribution and warehousing

Answer 1

The goods are produced at one place but the customers are scattered over a wide geographical area. Thus, it is very difficult for a producer to distribute his products all over the country. Therefore, he takes the help of some intermediaries to distribute his goods. For example, Maruti cars are manufactured at Gurgaon but are available all over the country with the help of intermediaries.

Channel of distribution refers to those people, institutions or merchants who help in the distribution of goods and services. Philips Kotler defines channel of distribution as “a set of independent organisations involved in the process of making a product or service available for use or consumption”.