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A distribution channel (also called a marketing channel) is the path or route decided by the company to deliver its good or service to the customers. The route can be as short as a direct interaction between the company and the customer or can include several interconnected intermediaries like wholesalers, distributors, retailers, etc.
Hence, a distribution channel can also be referred to as a set of interdependent intermediaries that help make a product available to the end customer.
Simulated Business Scenario
Jose, the Vice President of Retail Operations for Post Electronic Devices Incorporated (PED) just left a strategy meeting. He met with Elan, his Retail Sales Director to discuss a distribution plan to increase product awareness and interest. Jose wants Elan to develop a report that assesses the advantages and disadvantages of different types of retailers that can help distribute the products.
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