Channels of Distribution
Industrial User
A business that buys materials, services, or goods which will be used to make other goods or which will be used in the operation of the company
Consumer
A person who purchases goods and services for personal use
Retailer
An intermediary who purchases goods and sells them to consumers
Intermediary
Businesses or person who helps to move goods and services from the producer to the consumer
Producer to agent to retailer to consumer
Channel used to reach large retailers; producer gives up selling responsibilities
Producer to retailer to consumer
Channel used to reach large retailers; producer maintains selling responsibilities
Producer to agent to wholesaler to retailer to consumer
Channels used to reach smaller retailers; producer gives up selling responsibilities
Producer
Grower, Provider, or manufacturer or goods or services
Producer to agent to user
Industrial goods channel used for items with high unit values; producer gives up selling responsibilities
Producer to agent to industrial distributor to user
Industrial goods channel used for items with low unit values, producer gives up selling responsibilities
Agent
Intermediary who assists in the sale of goods and services from producer to wholesaler
Industrial Distributor
Intermediary who functions much the same as wholesalers do for consumer goods
Producer to wholesaler to retailer to consumer
Most common channel for consumer goods
Producer to industrial user
Most common route for industrial goods
Industrial Goods
Tangible items that will be consumed by industrial users
Wholesaler
businesses that purchase large quantities of goods from producers to sell to retailers
Direct Distribution
channel of distribution is straight from manufacturer to consumer or industrial user
Indirect Distribution
distribution involving one or more intermediaries
Consumer Goods
items that will be used by the ultimate consumers
Channel of Distribution
the path a product or service follows to the consumer or industrial user