1. Channels of Distribution

2. Channel of Distribution
Path a product takes from its producer or manufacturer to the final user
When product is used for business, it is called an industrial user.
When a product is used for personal use, it is called a consumer

3. Channel Members Called intermediaries – or middlemen
Reduce the number of contacts required to reach the final user of the procut
Major classifications: wholesaler or retailer

4. Wholesaler Buys in large quantities from manufacturers
Stores the goods
Resells them to other businesses

5. Retailers Sells goods to final consumer
Purchases from intermediary and re-sells

6. Direct and Indirect Channels
Direct Distribution- occurs when the producer sells goods or services directly to the consumer with no intermediaries
Indirect Distribution-involves one or more intermediaries

7. Class Assignment
Work with a partner. Trace the distribution channel of selected product from producer to final consumer.
Identify how each intermediary (or channel member) marks up the price to make a profit and how that impacts the price to the final consumer.
Prepare in a PPT slide or presentation.