CHANNELS OF DISTRIBUTION

SERVICES PROVIDED BY WHOLESALERS

1. Buying in large quantities and selling to retailers in smaller quantities and delivering goods to retailers. 2. Stocking in one place the variety of goods that retailers otherwise would have to buy from many producers. 3. Providing assistance in other vital areas, including promotion, market information, and financial aid. Performing functions similar to those provided to retailers. 4. Providing a sales force, reducing inventory costs, assuming credit risks, and furnishing market information.

TYPES OF RETAILERS

1. Independent retailer 2. Chain retailer 3. Department store 4. Warehouse showrooms 5. Convenience store 6. Supermarkets 7. Superstores

LEVELS OF MARKET COVERAGE

1. Intensive distribution 2. Selective distribution 3. Exclusive distribution

TYPES OF WHOLESALERS

1. Merchant Wholesaler 2. Agents and Brokers

COMMONLY USED DISTRIBUTION CHANNELS

1. Producer to Consumer 2. Producer to Retailer to Consumer 3. Producer to wholesaler to retailer to consumer 4. Producer to agent, to wholesaler, to retailer to consumer 5. Producer to organizational buyer 6. Producer to agent middle man to organizational buyer

MARKETING INTERMEDIARIES

Wholesalers

SUPPLY CHAIN MANAGEMENT

is a long-term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies while creating a competitive advantage and satisfying customers.

DISTRIBUTION CHANNEL

or marketing channel, is a sequence of marketing organizations that directs a product from the producer to the ultimate user. Every marketing channel begins with the producer and ends with either the consumer or the business user.

SUPPLY CHAIN

the sequence of processes involved in the production and distribution of a commodity.