slide contains more information about channels of distribution, types pf middleman who are engaged in distribution of drug, their roles and responsibilities. complete information about retailer and wholesaler

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2. CONTENTS
 Channels of distribution
 Types of middleman
 Wholesaler
 Retailer
 Multiple shop or chain store
 Mail order business
 Consumer cooperative store
 References
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3. CHANNELS OF DISTRIBUTION
 Distribution channel may be grouped under two major
heads
A) Direct selling
Manufacture Consumer
B) Indirect selling
1) Manufacture Retailer Consumer
2) Manufacture Wholesaler Retailer Consumer
3) Manufacture Distributor Wholesaler Retailer
Consumer
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4. TYPES OF MIDDLEMAN
 There are two types of middleman
1) Functional middleman
Ex. Brokers, commission agent, Auctioneeris, Del
credere agent.
2) Merchant middleman
Ex. Wholesaler, Retailer.
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5.  WHOLESALER
 These are those agent which acts as intermediate
between the manufacturer and retailer. They buy
goods and commodities in large quantities from the
producer and sell them to the retailers.
 Classification wholesaler
I. Manufacturer wholesaler
II. Retailer wholesaler
III. Wholesaler proper
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6.  Functions of Wholesaler
i. Assembling
ii. Distribution
iii. Warehousing
iv. Transportation
v. Financing
vi. Risk-bearing
vii. Pricing
viii. Grading and packaging
ix. Market research
 Services performed by
Wholesaler
i. Services to retailers
ii. Services to retailers and
manufacturer
iii. Services to the society
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7. RETAILERS
 Retailer is a middleman between a wholesaler and
actual consumer. The retailer sell the goods to the
consumers and maintains the intimate contact with
the wholesaler, manufacturer and consumer. The
retailer dealing in pharmaceutical trade is known as
‘chemist’ or a ‘pharmacist’.
 Classification of Retailers
1) Itinerant retailers
Ex. Hawkers and pedlars, street traders,
market traders.
2) Fixed shop retailers
Ex. Small scale retail shop, large scale retail shop
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8.  Functions of Retailers
i. Wide choice to consumers
ii. Ready Stock
iii. Transport
iv. Grading
v. Risk bearing
vi. Financing
vii. Market research
viii. Sales promotion
 Services performed by
Retailers
i. Services to the
producer/wholesaler
ii. Services to the consumer
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9. MULTIPLE SHOP OR CHAIN STORE
 Multiple shops or chain stores are the group of
shops in the same branch of retail trade. A single
business firm opens a number of branch shops
which are situated at different localities in the city or
different parts of the country.
 Advantages
 Disadvantages
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10. MAIL ORDER BUSINESS
 Mail order business is a type of retail trade in which
all business activities take place through mail.
 Types of Mail order Business
I. Manufacturer mail order business
II. Departmental mail order business
III. Middleman mail order business
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11.  CONSUMER COOPERATIVE STORES
 The customers themselves from a society and run
the retail business. The basic purpose is to
eliminate middleman.
 Advantages
 Disadvantages
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12. REFERENCES
 R. M. Mehta, Drug store business management,
Vallabh Prakashan, fifth edition 2015( reprint), page
no. 47-68.
 V. N. Raje, Drug store business management, Nirali
Prakashan, edition, page no. 40
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13. THANK YOU
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