CHANNELS OF DISTRIBUTION
Identify the different channels of distribution.
– Draw the channels of distribution.
– Note and draw a chart.
EMBEDDED CORE SKILLS
Critical thinking and problem solving.
– Collaboration and communication.
-Creativity and innovation.
– Web resource/ site (www.feedough.com)
-Other instructional materials (Charts and diagram of Distribution channels.)
CHANNELS OF DISTRIBUTION
A distribution channels is the method a company uses to get its products into the market place for consumer use. 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,in other words,it is a distribution network through which producers puts his products in the market and passes it to the actual users,
An entrepreneur has a number of alternative channels available to him for distributing his products.These channels vary in the number and types of middlemen involved,some channels are long and indirectly link the two through one or more middlemen.
These channels of distribution are broadly divided into four types;
PRODUCER OR CUSTOMER; This is the simplest and shortest channels in which no middlemen is involved and producers directly sell their products to the consumers,it is a fast and economical channels of distributions,under it,the producer or entrepreneur performs all the marketing activities by himself and has full control over distribution, a producer may sell directly to consumers through door-to-door salesmen,direct mail or through his own retail stores.Big firms adopt this channels to cut distribution costs and sell industrial products of high value,small producers and producers of perishable commodities also sell directly to local consumers,
PRODUCER TO RETAILER TO CONSUMER;; his channel of distribution involves only one middlemen called ; RETAILER’ under it,the producer sells his product to big retailers,who in turn sell to the ultimate consumers,This channels relieves the manufacturer from the burden of selling the goods himself over the process of distribution,This is often suited for distribution of consumer durable and products of high value
PRODUCER OF WHOLESALER TO RETAILER TO CUSTOMER; This is the most common and traditional channels of distribution,under it,two middlemen i.e wholesalers, and retailers are involved,here the producer sells his product to wholesalers finally sell the product to the ultimate consumers.
PRODUCER TO AGENT TO WHOLESALER TO RETAILER TO CUSTOMER; This is the longest channel of distribution in which three middlemen are involved,this is used when the producer wants to be fully relieves of the problem of distribution and thus hands over his entire outputs to the selling agents,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 ultimate consumers,This channels is suitable for the wider distribution of various industrial products,
Identify two examples of distribution channels
(Visited 36 times, 1 visits today)