Sunday 25 September 2016

Different Channels of Distribution

Different Channels of Distribution
1. Producer to the consumer
Expensive, technical, perishable, exclusively made for one customer.
2. Producer to retailer to consumer
Large scale retailer, producer’s own outlet, suitable for perishable items for example
bakery.
3. Producer to wholesaler to retailer to consumer
Standardized, consumer items, low value and high shelf life, suitable when demand
of products are seasonal or the production is seasonal.
4. Producer to agent to wholesaler to retailer to consumer
Only incase of international trade. Overseas producer appoints a agent in home
market. For example imported cars and cosmetics

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