Channels of Distribution in Business

Distribution is the final stage of Business. Distribution is making goods or services available for man use by
Business man or Producer.

It can also be expressed as the movement of goods from the manufactured location
to the final Consumer.
Below are the channels of Distribution:


PRODUCER TO CONSUMER: This is the most easy channel of distribution, it is a direct channel that
involves no middle man; i.e. from Producer to consumer. It is a very fast form of distribution, in which the
Producer will be in-charge of all the marketing activities.

Producer will have to deal directly with the consumer without involving any third Party. This kind of
Distribution Channel are mostly adopted by upcoming Producers that want to attract Consumers to make use
of there goods or Services.

A good example of these is Block industry. Block Industries deal directly with the Consumer. If you need to use
Block, you go directly to the Industry and buy.

PRODUCER TO RETAILER TO CUSTOMER: This kind of distribution channel is a bit different in the
sense that there will be a middle man in between the Producer and the Consumer. The Producer will sell his
goods to the retailer that buy in large Quantity on Company Price. The Producer will be the one to sell it to the
final Consumer.

Good examples of this are Bread Industry. This industry will distribute their goods to retailer before it got to the
Ultimate consumer.

PRODUCER TO WHOLESALER TO RETAILER TO CONSUMER: This channel of Production is the
most common and most used channel of Distribution around the World. In this kind of Channel, Wholesalers
and retailers are involved. This kind of distribution is from Producer to the Wholesaler to the Retailer then
finally to the Ultimate Consumer.

This Channel is used for a well graded Business, especially Business with wide market.

A good example of this are Recharge card industries, The manufacturer of the Recharge card will sell there
cards to the wholesaler, the wholesaler will sell to the Retailer, then the Retailers will sell do the final
Distribution.

PRODUCER TO AGENT TO WHOLESALER TO RETAILER TO CUSTOMER: This channel is the
longest channel of Distribution, it involves 3middlemen. This Channel is only use when the producer doesn't
want to him himself in any stress of the Distribution Problem.

The agent is the one to work as Producer/Manufacture. The agent will be the one to distribute the Goods to
some selected Wholesaler; each Wholesaler will sell to Retailers before it got to the Ultimate Consumer.

Distribution is a very important role in Marketing, it is important for a Producer to know everything about
Distribution.