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It is the way that goods The initial point of the People or firms that
distribution channel; mediate in The commercial
or services use to pass
people or companies transaction between target of the
from the producer to
who manufactures producer and distribution channel
the end consumers.
goods or services. consumers.
Let’s 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
Let’s 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
Vocabulary
sells it without automobiles, appliances, designer
intermediaries. clothes, among, require who could
have exclusivity for area sales.