1. Industrial Distribution Channels #3 Today I am: Taking notes and focusing on how industry moves product. So I can: Compare channels of distribution for industrial products I will know I’m successful when: I can identify businesses functioning within the four different industrial channels

2. Two general types of distribution channels Consumer Industrial Five Channels Four Channels

3. Industrial Distribution Channel Manufacturers/Producers Agents Distributors Industrial Users A B C D Most used 1)Channel A is by far the most common. Producers hire their own sales force 2)Distributors are similar to wholesalers on the Consumer side, but incorporate a strong sales element 3)Agents work representing small companies

4. Industrial Distribution Channel Manufacturers/Producers Agents Distributors Industrial Users A B C D Most used Examples: A – Business equipment sales. Copiers, computers, many things. B – Sell to specialized distributors. Restaurant or plumbing supplies distributor. C – Small manufacturer with specialized product, again to a specialized distributor. D – Manufacture with a “big ticket” specialized product. A farm tractor for instance direct to a farm.