UNIT 6: ORGANISATION OF TRADE

Channels of Distribution

 Meaning
 The possible paths by which the products may be channelized from producer to the
consumer.
 Middlemen
 Direct Selling
Middlemen

 Are those merchants who act as intermediaries between the producers and
consumers in the distribution of goods.
 Connecting links
 Functional middlemen or mercantile agents
 Merchants
 Merchants are those middlemen who obtain title to the goods with a view to selling
them at a profit.
Functional Middlemen or Mercantile Agents

 Brokers
 Commission Agents
 Auctioneers
 Common Carriers
 Banks, Insurance Cos. Etc.
INTERNAL TRADE
Merchant Middlemen

 WHOLESALERS
 Manufacturer wholesalers
 Retailer wholesalers
 Wholesalers proper------Mill supply wholesalers----Singe line wholesalers-----
Complete line wholesalers
Functions

 Assembling
 Dispersion
 Warehousing
 Transportation
 Financing
 Risk Assuming
 Pricing
 Grading and Packaging
EXTERNAL TRADE
Imports –

 Capital goods
 Technical Knowhow
Exports

 Earn Foreign Exchange

 Improve Balance of Payments
Role and Importance of Support Services
INSURANCE

 Life Insurance
 Fire Insurance
 Marine Insurance
TRANSPORTATION

 Value of Service
 Principle of Discrimination
 Time Utility
Business Combinations

 Mergers
 Acquisitions
 Franchising
 MNC