Channel of Distribution

Topics: Retailing, Sales, Marketing Pages: 3 (628 words) Published: December 10, 2012
The prime of object of production is its consumption. The movement of product from producer to consumer is an important function of marketing. It is the obligation of the producer to make goods available at right place, at right time right price and in right quantity. The process of making goods available to the consumer needs effective channel of distribution. Therefore, the path taken by the goods in its movement is termed as channel of distribution. The goods may be sent to the consumer directly or indirectly through middlemen. The channel of distribution may be classified as:

Selling through direct channels

This is the oldest, shorter and the simple channel of distribution. The producer sells the product directly without involvement of any middle man. The sale can be made door to door through salesman, retail stores and direct mail. Certain industrial and consumer goods such as clothes, shoes, books, hosiery goods, cosmetics, household appliances, electronic goods etc., may be sold through direct contact. Perishable goods such as vegetable and fruits can also be sold directly.

Advantage of selling through direct channels

It is simple and fast.
It is economical.
The producer has full control over distribution.
Satisfies the desire to reduce dependence on middle men.
Cash sales.
Disadvantages of selling through direct channels

Non-availability of expert services of middle man.
Large investment is required.
Unsuitable for small producers.
Methods of selling through direct channels

Selling goods through own retail outlets.
Selling goods through postal services.
Selling goods through courier services.
Selling goods against orders received, by telephone, email and fax is know as telemarketing. This method is being used by Asian Sky Shop. The product is delivered to the customer through producer's own vehicles, V.P.P. or courier. Suitability of selling through direct channels

Costly industrial goods such as computer, aircraft, heavy...
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