Distribution channels refer to the path that products take from production to consumption. There are various types of intermediaries that can make up distribution channels, including retailers, wholesalers, distributors, and agents. When choosing a distribution channel, businesses must consider factors like the nature of the product, characteristics of the target market, and their own capabilities and resources. Distribution channels can be either direct, involving no intermediaries between producer and consumer, or indirect, utilizing various intermediary parties.
4. The Objective of Distribution To make products available in the right place at the right time in the right quantities
5. What is a distribution channel? A distribution channel moves a product from production to consumption
6. Channels can have various levels Each party in a distribution channel is called an “intermediary” Producer Producer Producer Wholesaler Distributors / Agents Retailer Customer Customer Customer
7. Main Types of Intermediary Retailer Distributor Wholesaler Agent
8.
9.
10.
11.
12. Wholesaler - Example Producer Wholesaler Retailer Customer Sale of Daily Newspapers Newspaper Publisher – e.g. The Sun, The Times – who send bulk print runs of newspapers to large depots run by wholesalers Wholesaler (e.g. John Menzies) packs newspapers into bundles for retailers (e.g. newsagents) Retailer (e.g. newsagent; petrol station) displays newspaper in store and delivers to homes Customer = newspaper buyer
![What this topic is about ,[object Object],[object Object],[object Object]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)