PADMINI SAHOO FARAH NAAZ VIKASH KU.

JOSHI SEBASMITA BINAYAK

CHANNEL OF DISTRIBUTION
Any sequence of institutions from the producer to the consumer including one or any number of middlemen is called Channel Of Distribution. After production , the next problem faced by a producer is that of selling and distributing . Because production is made to satisfy the needs of the consumers, so it must reach to the consumers for whom it is made . So the way through which goods flow from the producer to the consumer is called Channel Of Distribution.

IMPORTANCE OF CHANNEL OF DISTRIBUTION

Distribution channel is an important element in marketing mix of a firm. Cost involved in the use of a distribution channel enters the price of the product that is ultimately paid by the consumer. Product or services is really useful only when it is available to the end user at the right time and right place. The channel decision determines where and when the product will be available to the consumer. The channel decision involves long term commitment of the firm. The relation between the manufacturer and middleman depend largely upon the choice of channel of distribution. Changes in channel are not easy. The right choice of channel of distribution will reduce the fluctuation in the production due to continuous and effective distribution.

 Help in production function

Matching demand and supply Financing the producer

Aids in communication
Stabilizing the prices Promotional activities Routinisation of decisions Pricings

 Product considerations
Market considerations Consumer considerations

Middlemen considerations
Manufacturers considerations

KINDS OF INTERMEDIARY
Direct Channel Indirect Channel

 Selling at manufacturer plant

Door to door selling Mail order house

Online shopping
Multiple shop

 Wholesaler
Retailer

Wholesaler are marketing middleman who occupy a position mid-way between retailer and the producer or manufacturer. According to Philip Kotler, wholesaling includes sales by any form to any customer except an ultimate consumer who is buying for personal nonbusiness use. The person who is involved in wholesaling activity is called as wholesaler.

 Anticipating customer needs

Buying and assorting Communicating

Financing
Selling and promotion Breaking bulk

Transportation
Storage Risk taking

Retailers sell products directly to consumer. Retailers includes all the activities involved in selling or renting consumer products and services directly to ultimate consumers for their personal or household use. According to Philip Kolter, retailing includes all the activities involved in selling goods or services directly to final consumers for their personal, non business use.

 Function of Breaking Bulk Function of creating Place Utility Keeping Varieties of Goods Providing Credits Facilities to Consumers Provide Information to Customers and to

Wholesalers Estimating the Demand and Arranging the Purchase of the Products Acts as a Consumers Agent Marketing Function Connecting Link

 Retailers may provides special facilities of their customers,

for example, free home delivery, after-sales service,etc Retailers very often guide their customer about the relative merits of the various brands of a particular products and thus help them in the selection of goods. By proper display of new products the retailers keep the consumers informed about the changing trends in production or different varieties of goods, besides hoping manufacturers to promote their products. By keeping various varieties of a particular product retailer provides a wide variety of choice to their customers

WHOLESALER
Wholesaler purchases goods

RETAILER
Retailer purchases goods from wholesaler and sells to the ultimate customer. Retailer purchases goods in small quantities. Retailer is the last link in channels of distribution of goods. Retailer deals in a variety of goods In retail trade, the capital requirement is less Retailer emphasizes on display to attract the customers

from the producers and sells to the retailers. wholesaler purchases goods in large quantities. Wholesaler is the link between producer and retailers. Wholesaler deals in specific goods In wholesale trade, the capital requirement is heavy He does not display his goods

 Sole-selling agent
Marketer C&F agent(CFA) Wholesaler/stockist/distributor Semi-wholesaler Retailer/dealer Broker Franchisee Commission agents Jobber

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Marketer/ sole selling agent

Wholesaler/ distributor

Wholesaler/ distributor

Semiwholesaler Manufacturer's showroom User Retailer User Franchisee User Retailer User

Semiwholesaler Retailer User