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Thursday, 4 October 2018

Selection of Channels of Distribution

The channel chosen from the distribution of a company's products will ultimately affect every other marketing decision the company takes and will go a long way in determining the success of the products. Channel decision will involve the company in relatively longer term commitment to other firms. To this effect,the company has to carefully gather and study all necessary information which will ensue it to take a good decision. While taking channel selection decision, the company must have in view tomorrow's likely marketing environment as well as today's.

Below are the major types of distribution channels available to a producer for the distribution of his products.

1) Producer of Consumer Goods>Retailer>Ultimate Consumer.

Producer of consumer goods>Merchant wholesaler>Retailer>Ultimate consumer.

Producer of consumer product>Agent>Retailer>Ultimate consumers.

Producer of consumer goods>Agents>Merchant wholesalers>Retailers>Ultimate consumers.

2)Producer of business goods>Merchant wholesaler(Industrial distributor)>Business users.

Producer of business goods>Industrial distributor>Reseller>Business users.

Producer of business goods>Agent>Business users.

Producer of business goods>Agents>Merchant wholesalers>Business users.