What are Marketing Channels - Definition, Factors, Functions
                     WHAT ARE MARKETING 
CHANNELS? 
DEFINITION, FACTORS, 
FUNCTIONS
Marketing Channels
Marketing channel is a system which ensures the 
distribution of the merchandise from the producer to 
the consumers by passing it through multiple levels 
known as middlemen. It is also known as channels of 
distribution. Every product is different from one 
another and so are their channels of distribution.
Source: theinvestorsbook.com
FACTORS DETERMINING 
THE MARKETING CHANNELS
Nature of Product
If the product is a general product which is widely used 
like cosmetics, it requires a more extended channel. 
Whereas, the product which is customised or has 
limited customers like industrial machinery needs a 
shorter channel.
Source: theinvestorsbook.com
Perishability
The goods which are perishable require to be sold 
through the shorter channel. However, the products 
which are non-perishable can be distributed through a 
longer channel.
Source: theinvestorsbook.com
Unit Value of the Product
If the product is of low value it can be easily 
distributed through the longer channel, but for the 
products which are expensive and valuable the 
manufacturers prefer a shorter channel.
Source: theinvestorsbook.com
Product Complexity
If the product is complicated to use and has technical 
specifications, it will require a shorter channel. The 
products which are user-friendly and easy to handle 
can be sold through longer channels.
Source: theinvestorsbook.com
FUNCTIONS OF 
MARKETING 
CHANNELS
Sorting
The middlemen purchase goods from multiple 
manufacturers and segregate the products which are 
similar in quality, features, size, etc.
Source: theinvestorsbook.com
Accumulation
Marketing channels ensure regular supply and 
circulation of goods in the market since the middlemen 
involved in the process are responsible for maintaining 
the required stock in ample quantity.
Source: theinvestorsbook.com
Allocation
The goods are manufactured in bulk quantities 
whereas the customers prefer to buy very less 
quantity. Here comes the role of the middlemen who 
breaks the volume into small packages according to 
the customers’ requirement.
Source: theinvestorsbook.com
Assorting
The customers can avail a large variety of products 
since the middlemen buy goods from the 
manufacturers or suppliers located in different regions 
and make them available to the customers at one 
single place.
Source: theinvestorsbook.com