Product policy is defined as a set of guidelines and rules which certain comapnies are using in their long-term planning of product development and sales. Each company may have different product policies depending on which strategies will provide the product with the ability to compete with competitors and sell on the market. Different policies and strategies are used for different products. Product policy activities are new product development, modification and elimination of existing products. Distribution channels are defined as a set of interconnected organizations whose main goal is to make products or services available to consumers for consumption. Distribution is important for the company's marketing strategy and market positioning, and the behavior of intermediaries affects the impression of the product and the manufacturer. Manufacturers can use a variety of intermediaries such as consumer representatives, brokers and sales agents. In order for product distribution to be successful, it is necessary to find intermediaries who will be able to present the product on the market within the manufacturer's desired sales and distribution strategy. The manufacturer should be inclined to maintain cooperation and interaction with intermediaries in order to achieve good communication. Distribution channel managers are required to know all the elements of the marketing mix to maximize its effectiveness in managing distribution channels. There are three main areas in which product policy and distribution channels are linked and these are new product development, product life cycle and strategic product management. In all areas, it is necessary to establish what actions need to be taken to achieve the goals of producers and members of the distribution channel.