This post will give you an idea about the major functions of Distribution Channels in marketing. It is also known as Marketing channels or Physical distribution channels.
Distribution channels, whether physical or digital, plays a very important role in the growth of the business and hence understanding of functions is essential for both marketer and future marketer i.e. management students.
Let’s understand various key functions of these marketing channels.
Warehousing
- Storage
- Reduces Transportation
- A Complete Advantage
- Balancing Demand Vs. Supply
- Place Utility
Inventory Management
- Transit stock/pipeline inventory
- Cycle stock
- Safety stock (buffer inventory)
- Anticipation inventory
- Smoothing inventories
- Hedge inventories
Transportation
- Identifying Transportation Requirements
- Chose Transportation Mix of different modes
- Routing
- Planning of the System
- Implementation
- Control of Cost
Order Processing
- Set of Processes of –
- Receiving
- Handling
- Ordering Promptly and accurately
- Billing
- Granting Credit
- Preparing Invoice
- Collecting Due
Material Handling
- Selecting the Proper equipment
- Minimising Breakage
- Maintenance
- Take care of Spoilage or theft
Other Functions
- Information & Customer Education
- Selling
- Financing
- Promoting
- Negotiating
- Marketing Intelligence
- Servicing
This is all about Functions of Physical Distribution Channels in Marketing.