What is a Channel System?

A channel system is the combination of all the channels of distribution a producer uses to reach consumers or customers. In other words, it's all the different methods that we use to move product from us (the producer) to our end customer (the consumer).

Traditionally, the relationships that exist within a channel system have been treated as competitive relationships. In other words, the wholesaler has always tried to make the most money they possibly could without really considering the retailer or the producer. It is a competitive endeavor to make money at the expense of the wholesaler or the producer. 

More recently, people have learned that moving towards a cooperative sort of relationship within the channel system can work out better for everybody. If we're all trying to sell the product and make sure that the consumer gets value from it, and we're all working together, we can all benefit more,

The relationships within the channel system become a source of value. A more cooperative kind of environment within the channel system has become a popular movement.

Related Topics

• What Does "Place" or "Placement" Mean?
• What is a Distribution Channel?
• What is Direct Distribution and Indirect Distribution
• What is Multi-Channel Distribution?
• What is a Channel System?
• Vertical Market
• Vertical Integration
• Ideal Market Exposure
• Intensive Distribution
• Selective Distribution
• Exclusive Distribution
• Discrepancy of Assortment
• Discrepancy of Quantity
• Channel Conflict
• Channel Stuffing