distribution channels

1. DISTRIBUTION CHANNELS
Presented By:-
Namrta Singh
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2. CONTENTS:
Definition
Types of channels
Marketing Intermediaries
Functions of Distribution Channels
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3. “A distribution channel is a chain or set of
intermediaries through which a good or service
passes until it reaches the end customer”.
Producer Intermediaries Customer
Distribution Channel
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4. Types Of Distribution Channels
Disrtibution
channel
Indirect
distribution
channel
Two-level
Three-level
Direct
distribution
channel Zero- level
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One-level
Four-level

5. Direct Distribution Channel:- This type of channel does not
have any market intermediaries, the goods go from the producer
direct to the customer.
This is also known as ‘zero-level’ distribution channel.
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6. Indirect Distribution channels:- In this type of channel
there are intermediaries and the product directly does not go to
the customer. These further can be classified as in the following
categories :
 One- level Distribution Channel
 Two- level Distribution Channel
 Three- level Distribution Channel
 Four- level Distribution Channel
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7. One- level Channel: There is only one intermediary between
the producer and consumer. The intermediary can be a retailer or
a distributor.
Example: tata sells its cars only to its authorized retailers,
expensive watche, etc.
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8. Two- level Channel: This type of channel has two
intermediaries, namely wholesaler/distributor and retailer.
Example: FMCG
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9. Three- level Channel: This type of channel has three
intermediaries,namely, distributor, wholesaler and retailer.
Example: sugar
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Producer Distributor Wholesaler
Retailercustomer

10. Four- level Channel: This type of channel has four
intermediaries and is used for consumer durable products also.
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Producer Agent Distributor
WholesalerRetailerCustomer

11. Market Intermediaries
• The people and organizations that assist in the flow of goods
and services from producer to customer are known as ‘market
intermediaries’. There are some common types of
intermediaries:
 Middleman
 Agent or broker
 wholesaler
 Retailer
 value-added seller
 Merchants
 Distributor
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12. It refers to just about anybody acting as an
intermediaries between the producer and the customer.
• Intermediaries with legal authority to
market goods and services and to perform other functions on
behalf of the producer.
These are the intermediaries that primarily buy
in bulk from the producer and then sell to the retailers and
other intermediaries.
This is the last link in many distribution
channels, retailers sell directly to the final customer.
They purchase goods from wholesaler or in some cases
directly from the producer.
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Middleman
Agent or Broker
Wholesaler
Retailers

13. These intermediaries buy basic product from the
producer and value to it or modify it and then resell it to the
customer.
These are the intermediaries that assume the
ownership of the goods they sell to customers and other
intermediaries.
It is the intermediary that buys goods from the
producer and warehouses them and resells them to further
intermediaries and customers.
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Value-added
Seller
Merchants
Distributor

14. Functions of Distribution Channels
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