What is a distribution channel – especially in services?


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A distribution channel consists of a set of people or firms who are intrinsically involved in the transfer of goods or services from the producer to the end user. The end user could either be an individual consumer or an industrial consumer. A channel of distribution includes the producer of the goods and services, the consumer of the same and a series of middlemen like wholesalers, dealers, retailers, agents etc. The channel for any offer is extended to the last person or institution that buys it without making any changes in the form of the offer. If there is any change in the form of the offer, then there will be another channel of distribution. In, services distribution the offer has to be produced and consumed at the same time in the place of offer (outlet).


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