Channels of Distribution — Flashcards

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A channel of distribution is the route or path along which goods move from producers to ultimate consumers. It shows how products travel from the maker to the buyer who finally uses them.

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Middlemen are needed because large-scale producers cannot always sell directly to all consumers. They help in buying, selling, storage, and movement of goods so products can reach faraway places and d…

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The middlemen are the agent, the wholesaler, and the retailer. They connect the producer with the consumer and help the apples move step by step to the market.

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A direct channel of distribution has no middleman between the producer and the consumer. Goods or services move straight from the producer to the buyer. A producer may use door-to-door salesmen or its…

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Examples of direct channel of distribution include producers selling through their own retail shops. Bata India Ltd, HPCL, and Liberty Shoes Limited use this method. Banks, consultancy firms, telephon…

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An indirect channel of distribution uses one or more middlemen between the producer and the consumer. The producer does not sell directly; instead, the goods pass through agents, wholesalers, or retai…

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The main indirect channels are: Producer → Agent → Wholesaler → Retailer → Consumer, Producer → Wholesaler → Retailer → Consumer, Producer → Agent → Consumer, Producer → Wholesaler → Consumer, and Pro…

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A wholesaler is a middleman who buys goods in large quantities directly from producers and sells them in relatively smaller quantities to retailers. In some cases, a wholesaler also sells directly to …