Distribution (Cont.).

Marketing S.S.S 3 First Term

WEEK 9

Distribution (Cont.).

Performance Objectives

Students should be able to:

1. Explain and identify channels of distribution

Content

1. Channels of distribution

 

Channels of Distribution

Channels of distribution connote the medium through which products pass from manufacturers to consumers. Factors that inform the channel decision are:

I. The size of the customers base

ii. Nature of the products

iii. Consumers behavioural pattern

iv. Perishability of product

v. Technical complexity etc

 

Levels of Distribution Channels

(a) Two level: Manufacturer-->Consumers

(b) Three level: Manufacturer-->Retailer-->Consumers

(c) Four level: Manufacturer-->Wholesaler-->Retailer-->consumer

(d) Five level: Manufacturer-->Agent-->Wholesaler-->Retailer--->consumers.

 

Key Terms

■ Distributor: This is a marketing intermediary who purchases products from the domestic firm and assumes the trading risks.

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