3. Channels for Consumer Products
Direct Retailer Wholesaler Agent/Broker
Channel Channel Channel Channel
Producer Producer Producer Producer
Agents or
Brokers
Wholesalers Wholesalers
Retailers Retailers Retailers
Consumers Consumers Consumers Consumers
3
4. Channels for Business Products
Direct Direct Industrial Agent/Broker Agent/Broker
Channel Channel Distributor Channel Industrial
Channel
Producer Producer Producer Producer Producer
Agents or Agents or
Brokers Brokers
Industrial Industrial
Distributor Distributor
Industrial Govt. Industrial Industrial Industrial
User Buyer User User User
3
5. Role of Intermediaries
• Physical distribution
– Transportation and storage
(temporal and spatial discrepancies)
– Breaking bulk (discrepancy of
quantity)
– Accumulating bulk (discrepancy of
quantity)
– Creating assortment (discrepancy of
assortment)
– Specialization
– Transaction reduction (transactional
functions)
• Contacting, negotiating,
transporting, financing, etc.
7. Role of Intermediaries
• Communication
– Marketing research
– Selling role for manufacturer/service
provider
• IMC
• Personal selling
• Point-of-Sales (POS)
• After-sale service
– Buying role for customers
• Likes/dislikes
• Returns
