Distribution channels refer to the pathways through which goods or services pass until they reach the end user, involving intermediaries like distributors, wholesalers, and retailers.
Example: A manufacturer of office furniture might use a variety of distribution channels to sell its products. They could sell directly to businesses (B2B), partner with office supply stores (partnerships), or offer their products through a SaaS platform that enables offices to plan and visualize their space before purchasing (SaaS). This approach allows the manufacturer to reach different segments of the market efficiently.
Understanding distribution channels helps businesses optimize market reach, tailor strategies to specific customer segments, and advance their competitive edge in the industry.
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