Channels of Distribution
Channels of Distribution
Lesson 20
Channels of Distribution
Are you aware that the study material of Business Studies, which is now in your hands, is prepared at the headquarters of the National Institute of Open Schooling (NIOS) situated at New Delhi.
How did it come to your hands? Was it available at your study centre or you bought it from the market? If you got it from your study centre, then just think for a while: how did it reach your study centre? Actually, after publishing the study material, NIOS sent this material to your study centre and then you collected it from there. Similarly, the NIOS study material available in the market is directly purchased by the booksellers from NIOS. Then, the booksellers sell it to you.
Thus, the study material published by NIOS reached you either through your centre or through booksellers. In a similar way most of the goods and services we use in our daily life also come from the producers or manufacturers and reach us through some people. In this lesson, let us learn how the goods and services of our need reach us.
20.1
Objectives
After studying this lesson, you will be able to:
•
explain the meaning of channels of distribution.
•
identify different channels of distribution;
•
describe the functions of wholesalers and retailers;
•
distinguish between wholesalers and retailers; and
•
identify different types of retail trade.
69
Business Studies
20.2 Meaning of Channels of Distribution
You know that the main purpose of trade is to supply goods to the consumers living in far off places. As goods and services move from producer to consumer they may have to pass through various individuals. Let us take an example. A farmer in Srinagar has an apple orchard. Once the apples are ripened he sells the apples to an agent of Delhi. The agent collects the apples from
Srinagar, packs them, and sells them to a wholesaler at New Delhi sabzimandi. The wholesaler
then
Lesson 20
Channels of Distribution
Are you aware that the study material of Business Studies, which is now in your hands, is prepared at the headquarters of the National Institute of Open Schooling (NIOS) situated at New Delhi.
How did it come to your hands? Was it available at your study centre or you bought it from the market? If you got it from your study centre, then just think for a while: how did it reach your study centre? Actually, after publishing the study material, NIOS sent this material to your study centre and then you collected it from there. Similarly, the NIOS study material available in the market is directly purchased by the booksellers from NIOS. Then, the booksellers sell it to you.
Thus, the study material published by NIOS reached you either through your centre or through booksellers. In a similar way most of the goods and services we use in our daily life also come from the producers or manufacturers and reach us through some people. In this lesson, let us learn how the goods and services of our need reach us.
20.1
Objectives
After studying this lesson, you will be able to:
•
explain the meaning of channels of distribution.
•
identify different channels of distribution;
•
describe the functions of wholesalers and retailers;
•
distinguish between wholesalers and retailers; and
•
identify different types of retail trade.
69
Business Studies
20.2 Meaning of Channels of Distribution
You know that the main purpose of trade is to supply goods to the consumers living in far off places. As goods and services move from producer to consumer they may have to pass through various individuals. Let us take an example. A farmer in Srinagar has an apple orchard. Once the apples are ripened he sells the apples to an agent of Delhi. The agent collects the apples from
Srinagar, packs them, and sells them to a wholesaler at New Delhi sabzimandi. The wholesaler
then