There are a number of channels of distribution available to the producer, which may be employed by him to bring his products to the market. Consumer goods may be distributed generally through channels, in each of which the manufacturers may use the sales branch or sales office as the additional alternative. One of the channels used is Producer-Consumer, where no middleman is involved. Sales are made from house to house or by direct mail. A second channel is Producer-Retailer-Consumer, by which goods may be purchased directly from manufacturers. Retail stores may also be opened by manufacturers by this channel. A third channel is Producer-Wholesaler-Retailer-Consumer, which is the traditional and most economical channel. Penultimately, there is Producer-Agent-Retailer-Consumer, in which many producers use manufacturing agents, brokers, etc. for reaching the retail market. Finally, there is Producer-Agent-Wholesaler-Retailer-Consumer, where the services of agents are utilized by the smaller retailers, who purchase from a wholesaler and sell to small stores.
A large number of channels of distribution are available to the manufacturer for bringing his product to the ultimate consumer. Efficient distribution at the least cost and attaining the desired volume of sale can be secured only after experience, study and analysis. The notice of the product, its unit value, its technical features, and its degree of differentiation from competitive products are the factors which may limit the number of potential channel alternatives.
A retailer, as the name indicates, does retailing, which is to say he sells to ultimate consumers. In the distributional hierarchy, retailers are below the level of stockists, distributors, and wholesalers. Sometimes, retailers are termed dealers or authorized representatives. The retailer often operates in a smaller territory or at his specific location; earns lesser commission compared to higher levels in the channel; he does not carry out stock holding and sub-distribution functions.
A stockist or distributor or wholesaler is also a large sized operator but not on par with the marketer or sole selling agent in level, size and territory of operation. Stock holding and sub-distribution, as per the policies laid down by the manufacturers or the marketers, are the main functions of stockists/distributors.
Related Articles of Interest :
-
Order Fulfillment
10 August 2010 8:30 PM | No CommentsChannels of distribution are the most powerful element when talking about order fulfillment. The main function of this element is to find out appropriate ways through which goods are made available to the market. It is a managerial function and hence proper decisions are to...
Read More -
Candle Wholesalers
10 August 2010 8:30 PM | No CommentsCandles have never been so popular. Candles are now a must, whatever may be the occasion. You have aromatic candles, candles made up of beeswax, and paraffin. The candle industry is witnessing an unprecedented boom, thanks to the candle wholesalers for playing a large part...
Read More -
Wholesale Men’s Underwear
10 August 2010 8:30 PM | No CommentsYou can find an astonishing variety of men’s underwear with wholesalers. Wholesale men’s underwear is extensively listed on online resources. A men’s underwear wholesaler is similar to other wholesalers selling other products. What a wholesaler does is to stock up products of leading brands. The...
Read More -
Wholesale DJ Equipment
10 August 2010 8:30 PM | No CommentsDJ equipment is first purchased by wholesalers in bulk quantities from the manufacturers themselves. This equipment includes decks, CD players, VCD players, DVD players, MP3 players, sound mixers, equalizers, speakers, headphones, etc. Wholesalers buy the equipments from the manufacturers at wholesale rates. Wholesale rates are...
Read More -
RV Wholesalers
10 August 2010 8:30 PM | No CommentsRecreational Vehicles are seeing an unprecedented boom in sales in recent times. If you are in the market for an RV, your choice is made difficult only because, you are literally pampered for choice, as there are so many choices. One has to thank the...
Read More -
Point Of Sale Displays
10 August 2010 8:30 PM | No CommentsIn a competitive market, point of sale displays help solve several of a marketer’s short-term hurdles. The impact of sales promotion measures is not durable like the results obtained through advertising and personal selling. Sale displays by and large are understood and practiced as a...
Read More -
Point Of Sale Marketing
10 August 2010 8:30 PM | No CommentsPoint of Sale marketing is the economic process by which goods and services are exchanged between the producer and the consumer and their values determined in terms of money prices. Much of marketing is concerned with the problem of profitably disposing of what is produced....
Read More -
A Guide To Wholesale Sunglasses
10 August 2010 8:30 PM | No CommentsWholesalers stock products and sell them to retailers in bulk, who then sell them to consumers. Retailers buy products from wholesalers at discounts and sell them to consumers at a profit. Each company has their own fixed wholesalers. It is always cheaper to buy sunglasses...
Read More -
Home Inventory Software
10 August 2010 8:30 PM | No CommentsWe have seen that a business can take its products to users in more ways than one. It can use different types of tools and structure its channel into a single tier, double or triple tier outfit. However, it cannot easily determine which one is...
Read More -
DVD Wholesalers
10 August 2010 8:30 PM | No CommentsDVD wholesalers, as the name suggests, stock leading brands of DVD players and in turn sell them to retailers. DVD wholesalers cater to the needs of a wide range of clientele. They may include exporters, market traders, departmental stores, shopping malls, electronic retailers, even other...
Read More