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Distribution Channel

 

A distribution channel is one of three types of marketing channels. It refers to the external means by which a company displays, sells and delivers its products and services to the buyer or user via dealers or distributors, wholesalers, retailers, agents, online affiliates, online retailers, etc. 
 
Car dealers, for example, are the primary distribution channel for automotive manufacturers. Grocery stores, pharmacies, and big box retailers, as well as independent and online retailers, are distribution channels for consumer packaged goods manufacturers. 
 
Some companies try to build their competitive advantage by negotiating exclusive agreements that prohibit their dealers/distributors from carrying competitive products.
 
The other two marketing channels are communication channels and service channels.
 
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