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1. Distribution channel is the main strategy that helps dealers to penetrate the target
market.
2. A wide diversity of factors such as nature of the products, market, and business,
among others, requires to be analyzed to decide the most convenient distribution
channel.
3. Market is the interchange of prices in which some people offer any merchandise
and others buy it, paid a negotiated price.
4. Consumers obtain services or goods to satisfy their needs.
5. Companies get together people who have similar goals and expect them to satisfy
the consumers needs.

Strategic plan of distribution

Distribution Producer Intermediary Consumers

channel

The initial point of the

It is the way that goods People or firms that
distribution channel; The commercial
or services use to pass mediate in transaction
people or companies target of the
from the producer to between producer and
who manufactures distribution channel
the end consumers. consumers.
goods or services.
Lets read
 Types of
distribution
channel

Indirect channel
Direct channel
A distribution channel is
The producer or manufacturer
often indirect, because
sells the product or service
there are intermediaries
directly to consumers without
between the supplier and
intermediaries.
the user or consumer.

Manufacture - consumer
Lets see in detail some
Short channel Long channel
information about
Manufactures Retailer- Manufacture wholesale- intermediaries.
Consumers
Retailer - Consumer
Example: A hairdresser
provides the service and Example: The marketing of
sells it without automobiles, appliances, designer
intermediaries. clothes, among, require who could
have exclusivity for area sales.

Vocabulary