Why do marketers use distribution channel?
Answer: Sometimes the producer distributes his products through his own channel and sometimes depends on others distribution channel. But they have to depend on distribution channel. The objectives/importance are as follows-
(1) Removing financial inability: Many companies do not have enough ability to distribute products on his own channel. Then they have to depend upon the distribution channel.
(2) Creation of possession utility: Distribution channels remove the obligations in the way of creating utility of possession.
(3) Probability of market expansion: Through distribution channel the probability of market expansion is increased because it ensures the free flow of products.
(4) Creation of Place utility: Distribution channel creates place utility by removing the distance between the production place and the consumption place.
(5) Creation of time utility: Distribution channel creates time utility by removing the distance between time of demand and time of consumption.
(6) Low cost: The intermediaries in the distribution channel helps to keep the cost low of the company by distributing the products.
(7) Supplying information: Information from consumer to producer can be passed easily through distribution channel.
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Financial Help: Sometimes producers get financial help by getting advance payment.
(9) Getting products at door side: By the help of distribution channel all the consumers get the product at door side.
(10) Solving operating problems: Distribution channel removes various operational problems for the producers.
(11) Taking risk: Many times, elements of Distribution channel takes the risk which was fixed for the producer.
At last it can be said that, distribution channel helps the producer to distribute his goods and helps the consumer to get his expected goods.
