Tim Burris in Demand Media, describe channels of distribution as “how products are delivered to target customers” (Tim, 2014). Marketers can either use mediators to deliver their products or they can go through the distribution process themselves. The direct route that a seller utilize to make finished product available to the market, whether buying it from the seller, at a store, online, from a salesperson, or otherwise, can be referred to as distribution channels. Every person or firm involved in buying, reselling and promoting the product as it makes its way to customers, are part of the marketing channel (Tim, 2014). Distributing channels in terms of grouping are the distributers, wholesalers, and retailers. They provide businesses with three kinds of functions. Namely, buying products for resale to customers; distributing products to customers; and supporting sales to customers through financing and other services. The primary function of the distributer is to make the product available in more markets, for convenience to customers’ purchase (Jorina, 2003).
Three different types of distribution channels we would use are, direct to end users, sell through a dealer network, and sell through a VAR (value-added reseller). With Direct to end users, we would have a sales team that sells directly to Fortune 100 companies. We would have a second product line for small businesses, instead of using our sales team, we would sell directly to end-users through a website and marketing campaigns. This would add value through the ability to create a direct and complete sell. Selling through a dealer network we sell our product through a geographical network of dealers who sell to end-users in their areas. The dealers may service the product as well. This will increase value by pushing our product further to the public. Value will increase through more sales since it is