Step 4: The Distribution Channel
The distribution channel is the way the product or service will physically be distributed to the customer. There are many channels of distribution you could use, but the ideal channel best fulfills your customer’s expectations about where and how the product or service should be sold.
Most services are delivered directly to the customer. For example, if you need a haircut, you would choose a particular hair stylist who would sell you the service – the haircut – directly. Products, on the other hand, use intermediaries, other businesses such as wholesalers, or retailers to get the product in the hands of the end user.
In the space below, draw your distribution channel. Will your channel be direct? Or indirect? Or both? Why?
My distribution channel will be direct because the desserts are delivered directly from my shop to my customers.
Most services are delivered directly to the customer. For example, if you need a haircut, you would choose a particular hair stylist who would sell you the service – the haircut – directly. Products, on the other hand, use intermediaries, other businesses such as wholesalers, or retailers to get the product in the hands of the end user.
In the space below, draw your distribution channel. Will your channel be direct? Or indirect? Or both? Why?
My distribution channel will be direct because the desserts are delivered directly from my shop to my customers.