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macroenomics Rubiean Fausto MKTG04 DISTRIBUTION CHANNEL A distribution channel consists of the set of people and firms involved in the flow of title to a product
Submitted by janzport on October 15, 2005
Category: Technology
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Rubiean Fausto
MKTG04
DISTRIBUTION CHANNEL
A distribution channel consists of the set of people and firms involved in the flow of title to a product as it moves from producer to ultimate consumer or business user. A channel of distribution always includes both the producer and the final customer for the product in its present form as well as any middlemen (such as retailers and wholesalers).
The channel for a product extends only to the last person or organization buying it without making any significant change in its form. When its form is altered and another product emerges, a new channel is started.
MAJOR CHANNELS OF DISTRIBUTION
Distribution of Consumer Goods
Five channels are widely used in marketing tangible products intended for ultimate consumers:
Producer-->consumer. The shortest, simplest distribution channel for consumer goods involves no middlemen. The producer may sell from door to door or by mail.
Producer-->retailer-->consumer. Many large retailers buy directly from manufacturers and agricultural producers.
Producer-->wholesaler-->retailer-->consumer. If there is a "traditional" channel for consumer goods, this is it. Small retailers and manufacturers by the thousands find this channel the only economically feasible choice.
Producer-->agent-->retailer-->consumer. Instead of using wholesalers, many producers prefer to use agent middlemen to reach the retail market especially large-scale retailers.
Producer-->agent-->wholesaler-->retailer-->consumer. To reach small retailers, producers often use agent middlemen, who in turn call on wholesalers that sell to small stores.
Distribution of Business Goods
The four most common channels for business goods are:
Producer-->user. This direct channel accounts for a greater dollar volume of business products than any other...
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