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Distribution Channels

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Monay BaLbuena

on 4 March 2013

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Transcript of Distribution Channels

Producer-Wholesaler-Retailer-Consumer Done A channel of distribution consists of three types of flows: Distribution Types Two middlemen (wholesalers and retailers) are involved. Here, the producer sells his product to wholesalers, who in turn sell it to retailers. And retailers finally sell the product to the consumers. The Product Producer-Retailer-Consumer This channel of distribution involves only one middlemen called 'retailer'. This channel relieves the manufacturer from burden of selling the goods himself and at the same time gives him control over the process of distribution. Distribution This is the longest channel of distribution in which three middlemen are involved. The agents distribute the product among a few wholesalers. Each wholesaler distribute the product among a number of retailers who finally sell it to the consumers. This channel is suitable for wider distribution of various industrial products. Producer-Agent-Wholesaler-Retailer-Consumer producers
consumers or users
selling agents
retailers (dealers) This channel consists of: Downward flow of goods from producers to consumers. Channels Resources THANK YOU :) A channel of distribution or trade channel is defined as the path or route along which goods move from producers or manufacturers to ultimate consumers or industrial users. What is a Channel of Distribution? Upward flow of cash payments for goods from consumers to producers Flow of marketing information in both downward and upward direction. Flow of information on new products, new uses of existing products,etc from producers to consumers. And flow of information in the form of feedback on the wants, suggestions, complaints, etc from consumers/users to producers. Producer-Consumer A producer may sell directly to consumers through door-to-door salesmen, direct mail or through his own retail stores. In this channel there is no middlemen involved and producers directly sell their products to the consumers. Presented by: Monica
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