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A channel of distribution or trade channel is the path or route along which goods move from producers to ultimate consumers or industrial users. The channel of distribution includes the original producer. In other words. it is the distribution network through which a producer puts his product in the hands of actual users. the final buyer and any middlemen-either wholesaler or retailer. .
3. 2. 2. ` 1.` 1. DIRECT CHANNEL Selling at manufacturer¶s plant Door-to-selling Mail order housing Multiple shops(chain) INDIRECT CHANNEL Wholesaler ---retailer Retailer . 4.
. Intermediaries provide Contacts Experience Specialization Scale of operation Greater Match supply and demand.efficiency in making goods available to target markets.
Information Promotion Contact Matching Negotiation Physical Distribution Financing Risk taking .
Limiting consumers' choice : The middlemen often promote products which are inferior in quality and get high margin of profit. lockouts. Superfluous : Most middlemen do not render any useful service in lieu of profit or commission. Some businessmen (middlemen) indulge in anti-social activities like hoarding(illegal storing) to earn huge amount to profits. Anti-social activities : They take undue advantage of adverse conditions in business.number : the ultimate elimination will reduce prices and burden on consumers. Thus they exploit consumers and limit their choice Excessive . etc. depression and change in fashions and habits. Limited risk taking : Middlemen do not bear the producers' risk such as loss due to strikes. They act as only transfer agents and unnecessarily cause delay in the flow of goods.
Buying and assembling II) Selling and dispersing III) Transportation IV) Storage V) Packing and grading VI) Advertising and Promoting sale VII) Financing VIII) Risk. I) .
I) .Wide choice to consumer II) Availability of goods in small quantities and at convenient places III) Home delivery IV) Assurance of regular supply V) Credit facility to customers VI) Close interaction with customers.
MOBILE RETAILERS ` ` ` ` ` SMALL SCALE RETAILERS GENERAL STORES SPECIALITY STORES SINGLE LINE SHOP ONE PRICE SHOP STREET STALLHOLDERS LARGE SCALE RETALERS DEPARTMENTAL STORES MULTIPLE SHOPS CHAIN SHOPS MAIL ORDER HOSES SUPERMARKET S HAWKERS & PEDLARS STREET VENDORS CHEAP JACKS STALL HOLDERS ONE-PRICE SHOP SECOND-HAND VENDING GOODS SHOP RETAILERS MACHINES FIXED RETAILERS .