The document discusses channels of distribution, which refers to the route by which products flow from producer to consumer. It notes the importance of channels of distribution for marketing mix, sales, profits and availability. The major types of channels are direct selling from manufacturer to consumer, and indirect selling which involves middlemen like wholesalers or retailers. Wholesalers are specifically discussed as merchant middlemen who buy in bulk from manufacturers and sell in smaller quantities to retailers, performing important functions like assembling, distribution, warehousing and financing.

1. Channels of Distribution
By- Mr. Chauhan
(12th Commerce)

2. Acknowledgement
I would want to convey my heartfelt gratitude to my teacher, for his invaluable
advice and assistance in completing my project. She was there to assist me every
step of the way, and her motivation is what enabled me to accomplish my task
effectively. I would also like to thank all of the other supporting personnel who
assisted me by guiding me without them I would not have been able to perform
efficiently on this project.
I would also want to thank the school for accepting my project in my desired
field of expertise. I’d also like to thank my friends and parents for their support
and encouragement as I worked on this assignment.

3. What is mean by Channels of
Distribution?
 A channel of distribution or trade channel is the route or path along which
products flow from the point of production to the point of ultimate
consumption or use.

4. Importance of COD
 Important element of marketing mix
 Influences sales volume and profits
 Determines where and when the product will be available to users
 Helps in reducing the effects of fluctuations in production

5. Types of Channels of Distribution
The distribution channels may be grouped under
two major heads :
 Direct selling
 Indirect selling

6. Types of COD Manufacturer Consumer
 Direct selling :
When the manufacturer sells his goods directly to the consumer
Manufacturer Consumer

7. Types of Channels of Distribution with
Indirect
 Indirect selling :
In this case there are one or two middlemen or intermediaries are involve.
For example :
A. Manufacturer ----Retailer------consumer.
B. Manufacturer ---Wholesaler----Retailer------ consumer.
C. Manufacturer ---Distributor----Wholesaler---- Retailer------consumer.

8. Types of Middlemen
There are two types of middlemen –
 1. Functional middlemen
 2. Merchant middlemen

9. Functional middlemen-
They help in transfer of goods from hands of the producer / manufacturer to
those of consumers without acquiring ownership rights.
The following middlemen come under this category :
 Brokers
 Commission agents
 Auctioneers
 Del creder agents

10. Merchant middlemen-
 They work for profit.
 They acquire and transfer the title to goods in their own name.
The following middlemen come under this category :
 Wholesalers
 Retailers

11. WHOLESALERS
“The middlemen who are engaged in wholesaling or wholesale trade are known
as wholesalers. A wholesaler is a trader who buys goods in large quantities from
manufacturers and resells them to retailers in small lots.”
Classification of Wholesalers
 Manufacturer wholesalers
 Retailer wholesalers
 Wholesaler proper

12. Functions of Wholesalers
 1. Assembling
 2. Distribution
 3. Warehousing
 4. Transportation
 5. Financing
 6. Risk bearing
 7. Pricing
 8. Grading and packaging
 9. Market research