DistributionDistribution §The concept of a channel of distribution §Who channel members are §The different non-store retailing methods §How channels of distribution differ for consumer and business-to-business products. What you’ll learn
Channel of DistributionChannel of Distribution The path or routes, that goods and services take from the producer to the ultimate consumer or industrial user.
Types of Intermediaries-WholesalersTypes of Intermediaries-Wholesalers Wholesalers: Businesses that buy goods from producers or agents and sell them to retailers. §Wholesalers buy a variety of goods from many producers and sell groups of related products to retailers.
Types of Intermediaries-AgentsTypes of Intermediaries-Agents Agents: Businesses or individuals that assist in the sale and/or promotion of goods and services but do not buy them from the producer.
Importance of IntermediariesImportance of Intermediaries Through the use of intermediaries, producers are able to match their production to the wants and needs of consumers or industrial users. Intermediaries will have products and services at the right place, at the right times and at the least costs.
Direct and Indirect ChannelsDirect and Indirect Channels Direct distribution occurs when the goods or services are sold from the producer directly to the customer – no intermediaries are involved. Example: A farmer sells corn at a street market. Indirect distribution involves one or more intermediaries.