Powerpoint presentation of Channels of Distribution.

1. BY
Mr.Nitin A.Lodhe
M. Pharm (Pharmaceutics)
Assistant Professor
Dr. R.N.Lahoti Institute of
Pharmacy,Sultanpur.

2. • 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.
What is mean by Channels of Distribution?

3. 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
Importance of COD

4. The distribution channels may be grouped under two
major heads :
i. Direct selling
ii. Indirect selling
Types of COD

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

6. II. 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.
Types of COD

7. TYPES OF MIDDLEMEN
There are two types of middlemen –
1.Functional middlemen
2.Merchant middlemen

8. 1.Functional middlemen –
They help in transfer of goods from
hands of the producer / manufacturer
to those of consumers without
acquiring ownership rights.

9. The following middlemen come under this category :
i. Brokers
ii. Commission agents
iii.Auctioneers
iv.Del creder agents

10. 2. Merchant middlemen
 They work for profit.
 They acquire and transfer the title to
goods in their own name.

11. The following middlemen come under this category :
i. Wholesalers
ii. Retailers

12. “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.
WHOLESALERS

13. Classification of Wholesalers
1. Manufacturer wholesalers
2. Retailer wholesalers
3. Wholesaler proper

14. 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