Distribution is one of the four elements of the marketing mix, the other threebe ing product, pricing and

promotion. This marketing mix is also referred toas the four Ps of marketing; distribution is here called physical distribution orplace . Simply put, distribution is the process of delivering the products manufacture d or service provided by a firm to the end user. Variousintermediaries are invol ved in this process. This chain of intermediarieswhich helps in transferring the product from one intermediary to the nextbefore it reaches the end user is call ed the Distribution Chain or Distribution Channel. Each intermediary has a speci fic role and need which the marketer caters to. A marketing channel is a system of relationships existing among businesses that participate in the process of buying and selling products and services. Marketing channels are the sets of interdependent organizations involved in the processof making a product or service available for use or consumption. The Importance of Distribution: Most producers use intermediaries to bring their products to market. They try to develop adistribution channel(marketing channel) to do this. A distribution cha nnelis a set of interdependent organizations that help make a product available for use or consumption bythe consumer or business user.Channel intermediaries ar e firms or individuals such aswholesalers, agents, brokers, or retailers who hel p move a product from the producer to theconsumer or business user. FUNCTIONS OF A DISTRIBUTION CHANNEL 1.It performs the work of moving goods from producers to consumers. 2.It overcomes the time, place and possession gaps between producers and consume rs. 3.It gathers information about customers, competitors and other factors in thema rket. 4.It places orders with manufacturers. 5.It acquires funds to finance inventories. 6.It assumes risks associated with channel working. 7.It provides storage for inventories. 8.It reaches agreement with customers on prices and other terms. 9.It provides credit to customers on purchasing.