Distribution II

Welcome to today’s class!!

We are thrilled to have you in our class!!

In today’s Marketing class, we will be learning about Distribution II

Remember how we started by talking about the goods you buy from the market. We also said Distribution is the reason why Mama Chinedu has the same products in Enugu as Mama Bunmi in Ibadan. 

Now, let’s look at Channel of Distribution. 

distribution

Distribution II 

Under this second phase of distribution, we will be focusing on the process in which distribution takes place. Just as we have passages, roads and routes we take to get home or school, we also have how goods are supplied. This process is what is called the channels of distribution. 

distribution channel

Channels of distribution are paths by which all goods and services travel to arrive at the intended consumer. Distribution channels can be short or long, and depend on the number of intermediaries required to deliver a product or service.

What Are The Components of a Distribution Channel

  • Producer: Producers combine labor and capital to create goods and services for consumers.
  • Agent: Agents commonly act on behalf of the producer to accept payments and transfer the title of the goods and services as it moves through distribution.
  • Wholesaler: A person or company that sells large quantities of goods, often at low prices, to retailers.
  • Retailer: A person or business that sells goods to the public in small quantities for immediate use or consumption.
  • End Consumer: A person who buys a product or service.

Since Distribution channels can be short or long, and depend on the number of intermediaries required to deliver a product or service, let’s see the existing types of Distribution channels. 

Types of Distribution Channels

Direct

A direct channel allows the consumer to make purchases from the manufacturer. This direct, or short channel, may mean lower costs for consumers because they are buying directly from the manufacturer.

Indirect

An indirect channel allows the consumer to buy the goods from a wholesaler or retailer. Indirect channels are typical for goods that are sold in traditional brick-and-mortar stores.

Hybrid

Hybrid distribution channels use both direct channels and indirect channels. A product or service manufacturer may use both a retailer to distribute a product or service and may also make sales directly with the consumer.

In summary, Channels of distribution are paths by which all goods and services travel to arrive at the intended consumer. Distribution channels can be short or long, and depend on the number of intermediaries required to deliver a product or service

Evaluation

Explain what you understand by Channels of Distribution

 

Reading Assignment

Highlight the Types of Distribution

 

Weekend Assignment

Explain the components of Channels of Distribution

 

We hope you enjoyed today’s class. In our next class, we will be learning about Merchandising.

Let us know your thoughts and questions in the comment section, and we will attend to them as fast as we can.

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