The document summarizes different types of distribution channels. It explains that a distribution channel involves producers, wholesalers, and retailers working together to make a product available to final consumers. It identifies direct channels, and indirect channels which can be short, double, or long. Short channels centralize supply between manufacturer and retailer. Double channels involve wholesalers, retailers, and exclusive agents. Long channels generally involve small businesses distributing directly from wholesalers to retailers. Indirect channels divide distribution tasks between third parties. Choosing a channel requires considering market coverage, control, and costs.
The document summarizes different types of distribution channels. It explains that a distribution channel involves producers, wholesalers, and retailers working together to make a product available to final consumers. It identifies direct channels, and indirect channels which can be short, double, or long. Short channels centralize supply between manufacturer and retailer. Double channels involve wholesalers, retailers, and exclusive agents. Long channels generally involve small businesses distributing directly from wholesalers to retailers. Indirect channels divide distribution tasks between third parties. Choosing a channel requires considering market coverage, control, and costs.
The document summarizes different types of distribution channels. It explains that a distribution channel involves producers, wholesalers, and retailers working together to make a product available to final consumers. It identifies direct channels, and indirect channels which can be short, double, or long. Short channels centralize supply between manufacturer and retailer. Double channels involve wholesalers, retailers, and exclusive agents. Long channels generally involve small businesses distributing directly from wholesalers to retailers. Indirect channels divide distribution tasks between third parties. Choosing a channel requires considering market coverage, control, and costs.
1. A distribution channel is an independent association that participates in the process of making a
product or service available to the final consumer. 2. The distribution channels are resources that produce an optimal displacement of the products until they reach the final consumer. 3. Important actors such as producers, wholesalers and retailers participate in a distribution channel. 4. The distribution channels are classified as follows: Direct channel, Indirect channel, which can be double, long or short. 5. The direct channel is used in the service sector; because being intangible goods, production and consumption take place simultaneously 6. The short channel is characterized in that the supply is centralized both in the manufacturer and in the retailer, between the two covering the need of the market. 7. The double channel is characterized by the participation of three agents: a wholesale distributor, a retail distributor and an exclusive distribution agent who also have a great participation in the distribution of the product. 8. The long channel is characterized by the fact that it is generally used in small businesses and that the merchandise or product goes directly from the wholesale distributor to the retail distributor, which already relates the distribution to the end customer or consumer. 9. The indirect channel is third parties or companies, the tasks of distribution, costs and the type of market are divided in such a way that between all of them they form a new working group. 10.To properly choose the distribution channel, factors such as market coverage, control and costs must be taken into account.