Definition
A distribution (or marketing) channel is the path traveled by a product from the manufacturer—through any middlemen—to the end user. It includes all the activities involved in transferring the ownership of goods from the point of production to the point of consumption. [1]
A channel of distribution is an organized network (system) of agencies and institutions which, in combination, perform all the functions required to link producers with end customers to accomplish the marketing task. [2]
A channel member may be a manufacturer, wholesaler agent, distributor, or retailer. [2]
Channel member commitment is the degree to which a channel relationship is stable, loyalty has been built, and each channel member is willing to make sacrifices to maintain the exchange. [2]
Channel member dependence refers to a channel member‘s need to maintain a particular channel relationship in order to achieve desired goals. [2]
Channel member satisfaction refers to the channel member‘s affective state reflecting its overall approval or disapproval of a channel relationship with another firm. [2]
Channel control refers to the actual impact that a channel member achieves on an associated channel member’s beliefs, attitudes, and behavior. [2]
Channel power refers to the ability of a particular channel member to control or influence the decision making and behavior of another channel member, or one channel member’s potential for influence with another channel member. [2]
See Also
Channel (media)
Channel margin
Channel performance
Distribution metrics
References
- Govoni, N.A. Dictionary of Marketing Communications. Sage Publications (2004).
- American Marketing Association, AMA Dictionary.