TOPIC: DISTRIBUTION CHANNEL OF

MARKETING

PRESENTED BY

YASSIN ROBLEH HIRAB

MEANING OF DISTRIBUTION CHANNEL

The term channel is derived from the french
word CANAL. The channel of distribution
refers to the pathway taken by the goods as
they move from the production point to the
point of consumption.

DEFINITION OF DISTRIBUTION CHANNEL

Channel of distribution comprises all of the
businesses and people involved in the
physical
movement and transfer of ownership of good
and service from producer to consumer.

BASIC CHANNELS OF DISTRIBUTION

Goods may be supplied to the consumers in
different ways.

The manufacturer can employe any one of the

alternative channels which best suited to him.

Various specialized marketing institutions.

It may be short and direct and long and indirect.

DISTRIBUTION OF CONSUMER GOODS

The channels available for the distribution of
consumer goods are:

Producer

Producer

Manufacturer

Consumers
Retailer
wholesaler
Consumer

Consumer
Retailer

DIFFERENT TYPE OF INTERMEDIARIES

MIDDLEMEN : A middlemen is one who
specializes in performing operation that are
directly involved in the purchase and sale of
goods in the process of their flow from the
producer to the final buyer.

BASIC CHARACTERISTICS OF MIDDLEMEN

They

act as the agent of the producers or

buyers.

They

work on commission basis, the receive a

certain percentage of commission on the
quantity of sales or purchases negotiated by
them.

They

do not take away the title to goods in

which they deal.

WHOLESALER: Wholesaler means

marketing

of goods in relatively larger quantities. The

wholesaler are the connecting link between
the
manufactures and the retailers. They buy in
large quantities and resell them to retailers in
smaller lots.

BASIC CHARACTERISTICS OF THE WHOLESALERS

The wholesaler generally deal in large size lots.

They buy goods from the manufacturer for the

purpose of reseal them others. Similarly their
object of buying is not personal consumption
but selling to others.

The wholesaler doesnt deal with the ultimate

consumers.

MEANING AND DEFINITION OF RETAILERS

The term Retailing has its origin in the
French word Retailers which means to
cut off a small piece. Evidently, the retail
trade was viewed as one that cuts off-small
portion from large lumps of goods.
Retailing consists of the activities involved in
sale of commodities to the final user or
ultimate consumer.

BASIC CHARACTERSTICS OF RETAILER

The

retailer generally sells in small quantities.

He is the last link in the chain of distribution.

In other words, he sells only to the persons for their
personal use and not for purpose of resale.

He may buy the goods from the wholsalers or

manufacturer either on his own account.

Since

he deals in smaller quantities, his sales volume is

less when compared to the wholesaler whereas his profit
margin is high

 THANK

YOU SO MUCH