1. Channels of Distribution Channel Management LAP 3
Channel It
Channels of Distribution
Producer
Agent
Wholesaler
Retailer
Consumer
Channel Management LAP 3

2. Channel It Explain the importance of channels of distribution.
Producer
Agent
Wholesaler
Retailer
Consumer
Explain the importance of channels of distribution.
Describe types of channels
of distribution.

3. Explain the importance of channels of distribution.

4. Channels of distribution make life easier by:
Saving time
Saving money
Allowing people to get products from all around the world

5. Channels of Distribution
Paths, or routes, that products take from producer to ultimate consumer or industrial user
NOT physical routes

6. Channels of Distribution
Producer—makes or provides goods and services
Ultimate consumer—Personally uses a product to satisfy her/his own needs or wants
Industrial user—a business that buys products used to make other products or used in the operation of the company

7. Intermediaries
Middlemen that operate between producers and consumers or users to help in the movement of products

8. Intermediaries
Retailers—businesses that buy consumer goods and sell them to ultimate consumers
Wholesalers—businesses that buy goods from producers or agents and sell them to retailers
Agents—businesses or individuals that assist in the sale and/or promotion of products but do not buy them from the producer

9. Intermediaries Learn more by viewing this video—

10. Importance of Intermediaries
Get products to consumers/users effectively and efficiently
Perform necessary functions such as buying, selling, pricing, financing, etc.

11. Importance of Intermediaries
Match production to consumer/user needs and wants by:
Buying big and selling small
Developing an assortment of goods
Transporting and storing goods

12. Describe types of channels of distribution.

13. Channels of Distribution for Consumer Goods*
*direct distribution

14. Channels of Distribution for Industrial Goods*
*direct distribution

15. Channels for Services Intangible—no need to ship or store
Most follow a direct route but sometimes agents are involved.

16. Products you’ve used this week
How did they get to you from the producer?

17. Channel members marking up products during times of disaster or low supply
Is it ethical?

18. Acknowledgments Original Developers:
Sarah Bartlett Borich and Lelia Ventling, MBA Research
Version 2.0
Copyright © 2016
MBA Research and Curriculum Center

19. Digital-based photography sources:
ThinkStock Photography
Various images used in this presentation are ©2015 Thinkstockphotos. All rights reserved

20. Copyright:
All photographic digital images on this CD are owned by the aforementioned photographic resources or their licensors and are protected by the United States copyright laws, international treaty provisions, and applicable laws. No title to or intellectual property rights to the images on this CD are transferred to you. These sources retain all rights and are not to be used, digitally copied, transferred, or manipulated in any way. To do so is a violation of federal copyright laws.