Summary

This document discusses the different types of distribution channels, including direct and indirect channels, and the roles of wholesalers and retailers. It also covers specialty channels like vending machines, the internet, and telemarketing.

Full Transcript

Types of Channels BMI3C Success Criteria I will be successful when I can ………… Describe the 3 different types of distribution channels Make a creative poster showing which channels real companies/products use to get to the consumer Direct Channels Customer buys di...

Types of Channels BMI3C Success Criteria I will be successful when I can ………… Describe the 3 different types of distribution channels Make a creative poster showing which channels real companies/products use to get to the consumer Direct Channels Customer buys directly from the producer No intermediaries – An integrated distribution policy is direct – Farmers’ Market – Bakery – Restaurant Indirect Channels Goes from producer to customer through one or more intermediaries – Importers May or may not have exclusive rights to distribute a product in their country Sometimes they seek out new products to import, sometimes they are contacted by a manufacturer looking to expand Agreements are contracted for a specified period of time Indirect Channels Wholesalers (COSTCO) – Buy from manufacturer and sell to retail stores or other businesses – Many manufacturers have minimum orders that they will ship, which are too big for smaller retailers (have to buy in bulk) – Key functions Breaking bulk Transporting Risk bearing Managing Financing Promoting Buying Providing market information Indirect Channels Retailers – The “front line” – sell directly to consumer – Must have the right… Merchandise (Product) Price Time Place Quantity Specialty Channels Indirect channels of distribution that do not involve a retail store (not physical) – Vending machines – The Internet – Catalogues – Telemarketing – Television sales

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