all channels of distribution in business explained in easy and understandable language along with beautiful presentations and examples of all different channels one can use for their business

2. Distribution Channel
Types of Distribution Channels
Direct Channels
Indirect Channel
• One Level
• Two level
• Three Level

3. What is a Distribution Channel?
A distribution channel is a chain of businesses
or intermediaries through which a good or
service passes until it reaches end consumer.
The number of intermediaries can be increased
or decreased according to the needs of
manufacturer.
manufacturer intermediaries consumer

4. Distribution channels
Direct Indirect
One Level Two Level Three Level

5. MEANING
A direct channel of distribution is the means by
which a company gets its product straight to the
consumer without using any intermediaries. This
channel is also called Zero Level
Manufacturer
(Producer)
Consumer
(Buyer)

6. Continued...
A company that is responsible for the sale,
transportation and delivery of its products
directly to the customer is using a direct
channel of distribution.
Examples:
o Through own retail stores{McDonalds, Bata}
o Through mail orders{QVC, Macy's.com}
o Through internet{Amazon, eBay}

8. • A chain of intermediaries through which a product
moves in order to be made available for purchase to
a consumer.
• An indirect channel of distribution typically
involves a product passing through additional steps
as it moves from the manufacturing business via
distributors to wholesalers and then retail stores.
Manufacturer Intermediary Buyers

9. ONE LEVEL CHANNEL
 Only one intermediary, i.e.
Retailers is used between the
manufacturer and the
consumers.
 The goods pass from the
manufacturer to the retailers
who in turn sells the goods to
the final users.
 For example: Maruti Udyog
sells its cars through company
Manufac
-turer
Retailer
Consumer

10. TWO LEVEL CHANNEL
 This is the most used channel of distribution for
consumer goods (like soaps, rice, clothes, pulses).
 Here, the wholesalers and retailers work as a
connecting link between the manufacturer and
consumers.
 The use of two middlemen covers larger marketing
area.
Manufac
turer
Whole-
saler Retailer
Consum
er

11. THREE LEVEL CHANNEL
 In this channel, there are
three intermediaries
involved- agents,
wholesalers and retailers.
 Manufacturers use their
own selling agents to
connect them with
retailers and wholesalers.
 This channel is used when
the manufacturer has to
cover a wide market of a
limited product line.
Manufacturer
Agents
Wholesalers Retailers
Consumers

12. The following diagram for better understanding:

13. Thank
Youfor lending your time