Distribution channels are an important element of marketing mix and are the routes through which products reach target customers. Indirect channels utilize middlemen like merchants and agents to distribute products from producers to consumers. Direct channels do not involve middlemen and producers sell directly to consumers. Companies may also use mixed channels that employ both direct and indirect methods simultaneously in different markets.

2. • Distribution channel is an important element of
marketing mix. The ultimate objective firm is
making product available to its target customer
and executive of this objective is distribution.

3. • Important element of 4
ps of marketing mix.
• It is a route
• It include middle man.
• It connect the link
between consumer and
producer
• Distributor is target
customer or users

4. Merchant
middlemen
Agent
middlemen
Direct
channel
Indirect
channel
Mixed
channel
Cooperative
distribution
Vertical
system

6. Under the indirect channel of distribution the marketing
company utilises the service of middle men to distribute its
product to the consumer.
• Merchant middlemen :- Merchant middlemen are those
business organisations which take both –tittle of the goods and
possession of goods .They bear the good remain with them. Its
include wholesaler and retailer
• Agent middlemen :- Agent middlemen get commission for
their service and do not bear the risk .It include such as broker
,commercial agent, commission agent e.t.c.

7. (c) Mixed channel of Distribution
The marketing company may use direct and indirect
channel of distribution simultaneously. For some market
the method of direct distribution may be used for
remaining market the indirect channel may be used . At
some place the firm may directly sell its product to
customer and for other place the service of middlemen can
be used.
(d) Co-operative Distribution:- cooperative distribution is
based on basic principles of cooperation . Under this type of
distribution system in order to avoid unnecessary
competition ,the firm dealing in the same product category
. All the product being manufactured by the member firm
are sold under common brand name .

8. (e) Vertical marketing system
The vertical marketing system is becoming popular. It is
tightly coordinated distribution channel designed specifically
to improve operating efficiency and marketing effectiveness.
Type of vertical marketing system

9. Various channel for the distribution of
consumer good and industrial good
Zero
level
One
level
Two
level
Third
level
(a) Consumer Marketing Channels

10. (b) Industrial marketing channel

12. TYPE OF
WHOLESALER
MERCHANT
WHOLESALER
FULL SERVICE
WHOLESALERS
LIMITED
SERVICE
WHOLESALER
AGENT
WHOLESALER
BROKER
COMMISION AGENT
SELLING AGENT
BUYING AGENT
TYPE OF WHOLESLERS

13. Retailing
assumes vital
significance in
the channel of
distribution .
Retailers sell the
goods or service
to ultimate
consumer or
users .

14. ON THE BASIS
OF PRODUCT
LINE
GENERAL MERCHANT
STORE
LIMITED LINE STORE
SINGLE LINE STORE
SINGLE PRODUCT
STORE
ON THE BASIS
OF METHOD
OPERATION
DEPARTMENTAL STORE
SUPER MARKET
CHAIN STORE
DISCOUNT HOUSES
FRANCHISE STORE
NON-STORE RETAILING
MALLS
CLASSIFICATION OF RETAILER……..

15. FACT0RS AFFECTING THE CHOICE OF
DISTRIBUTION CHANNELS
PRODUCTCONSIDERATION
MARKETCONSIDERATION
COMPANYCONSIDERATION
MIDDLEMCONSIDERATIONEN
1.MARKET
REPUATION
AND
GOODWILL
2.FINANCIAL
RESOURCES
3.LOCATION
4.PRODUCT
LINE
SPECIALISATIO
N
5.AVAILABLE
FACILITY
6.COST FACTOR
1.UNIT PRICE
OF THE
PRODUCT
2.PERISHABILI-
TY
3.NEWNESS OF
THE PRODUCT
4.TECANICALLY
OF THE
PRODUCT
5.TYPE OF
PRODUCT
1.NUMBER OF
PRESENT AND
POTENTIAL
CUSTOMER
2.GEOGRAPH-
IC
CONCENTRATI
ON OF
CUSTOMER
3.ORDER SIZE
1.MARKET
POILICY AND
STRATEGY
2.DESIRE TO
CONTROL THE
CHANNEL
3.FINANCIAL
RESOURCES
4.MANAGERI
AL RESOURCE