Why Is The Selecion Of Distribution Channel An Important Exercise?

Distribution channels are basically the channels through which your product reaches the market and further on to individual consumers. The decision about distribution channels of a product are very critical for the success of a product.

This can be better explained with the help of an example. If you are manufacturer of a good quality beauty soap, that you wish to sell to the mass market specifically the average consumers, you must make it available to your consumers also. Now if your distribution channels are based in a certain city only, you would be limited. Your consumers would want to buy your product but they will not find it in the  market. So in order to make the soap accessible to your target market, you would need to deliver it to everyone who needs it. For this you would require distribution channels that are accessible to the consumers.