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Definition Of Distribution And It’s Channels.

Definition Of Distribution And It’s Channels.


 

Distribution can be defined as the process in which service and products are transfered from their manufacturing source to the place of the consumers which might be spread over a wide area.

Different Channels Of Distributions.

We have many channels of distributions, consumer goods . They are listed below;


 

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  • The Producer – Agent – wholesaler – retailer – Consumers
  • The Producer – Wholesaler – Retailer – Consumers
  • The Producer – Retailer – Consumers
  • The Producer – Agent – Retail – Consumers
  • The Producer – Wholesaler – Producer
  • The Producer – Agent – Consumers – Consumers
  • The Producer – Consumers

The agents, wholesalers and the retailers are seen to be called the middlemen and it’s because they are to go between for the channel of distributions of goods.

Factors to be considered before choosing are;

Location of Consumer: If Consumers or settled over a wide area such as big countries like Nigeria or the US, the producer might consider using a very long channel of the type of products that is being sold is for a small numbers of Consumer, the short channel may be used.

Size of order: If the consumer of a product buys in bulk quantities, the producers may bypass most of the middlemen an sell to the consumer directly.

Nature of product: The nature of a product determines the channel of distributions to be chosen. The more cost the product, the shorter the channel of distributions.

Financial Resources Available To The Producer: Producers who are financially capable can use their own salesmen or open their own mini shops out there by shortening the channels of distributions.

Need To Control And Maintain Retail Price: A producer who doesn’t prefer his product to be sold above a certain price would be ready to use a short channel of distribution to stay out from big margins in the proce function of each agent in the channel of distribution.

The well known channel of distributions are;

  • Producers – Wholesalers – Retailers – Consumers.

What Is A Wholesaler And Who Are They?

Wholesaler can be seen as the business of making purchase and sales in a big quantities from manufacturers to sell in small quantities to the retailers. The bodies that provides this distribution services is known as the wholesaler.

The Position Of A Wholesaler.

The wholesaler is seen to be a middlemen, he or she stands as the bridge between the producers and the Retailers as a person or organization with a large amount of capital buys them in bulk quantities from a producer find it hard to play the roles of manufacturers and distribute at the same time.

As a result an intermediary link between the manufacturer and those who always want the product to satisfy their needs becomes very good.

The channel of products distribution follows this pattern. The producer or manufacturers directly with the wholesaler, while the seller is in direct contact with the retailers who in turn has direct contact with the consumer who receive the goods to satisfy his or her need.

The Function Of The Wholesaler.

In Service to the manufacturer;

SINCE the wholesaler is in the distribution business, represent the producer in several capacity.

  • He/she distributes goods bought from the manufacturer
  • He or she service the product distributed such service are especially in the areas of installation or repair of equipment.

As the manufacturer against the wholesaler does the marketing of goods. This allows the manufacturer to plough all his or her capital into production.

  • The wholesaler transfers goods from where there are produced to his or her warehouse.
  • The wholesaler service is a source of additional Capital for the manufacturer.
  • The marketing and advertising work is been carried out by the wholesaler.
  • The wholesaler sands to be the interest of the producer and the retailer.

In Services To The Retailers.

  • The wholesalers sells in little quantities to the retailer
  • The wholesalers may assist the retailer to transport hoods from his or her warehouse to the retailer place if business.
  • The wholesalers can grant small retailer credit to assist them purchase goods for distribution to the final consumer.
  • The wholesalers may sometimes send his or her salesmen to explain the feature or uses if the product he or she sells to the retailer.

Size Of The Wholesaler.

The wholesaler business can be divided into large wholesaler and small.

Large Wholesaler.

Large wholesaler supplies all kinds of products. The large wholesaler sells to other small wholesalers and retailers.

Small Wholesaler.

The small wholesaler is formed all over the country in one kind of trade or another. Small wholesalers generally trade on one particular product at a time. They may also deal in different brands from large wholesalers.

What is the Meaning Of Retail.

Retail is the selling of goods and services to the total consumers, that is making the goods active to the person who actually wants them. The final consumer is someone who purchases goods for his or her own use .

Definition of The Retailer.

A retailer can be seen as the organisation individual oral, he make sure that the goods needed by the consumers are always active in sufficient quantities. The retailer is seen to be the last link in the channel of distributions.

Retail Channel Of Distributions.

The channel of distribution shown below is the position of the retailers to that of the manufacturers, wholesalers and Consumers.

  • Production – Wholesaler – Retailer – Consumer

The diagram illustrates the class relationship between the Retailer and the consumers. The retailer does a dual function. Firstly, he/she interact direct with the wholesalers on behalf of the consumers, he or she existence in business can only continue when consumers are satisfied with the consumers extraction, manufacturing to consuming and finally retailing

Different Functions Of The Retailer.

The Retailer performs different functions, these functions can be divided into two main groups;

  • Service to the wholesalers
  • Service to the consumer

Retailer Service To The Wholesaler.

The Retailers represent the wholesalers at the local individuals or would leave since there are small numbers of wholesalers in any given area, the retailer i.e, represent the interest of the wholesalers in areas where the wholesaler, activities are not carried out.

  • The Retailer purchases in little quantity from the wholesaler according to the demand of the consumer.
  • The Retailer support the quick transfer of goods.

Retailer Service To The Consumer.

The Retailer breaks bulk since part of the consumers are unable to afford to buy in bulk quantities or in packets, the retailer breaks product into little units.

  • The Retailer makes goods ready to smaller segment or words in a given country.
  • The Retailers makes buying mobe conveniently in many localities. Retailers open their shops for business very early in the morning to late in the night
  • The Retailers supports the consumers since there are several product with different names the consumers may want information about the products. That would satisfy his or needs.

Thanks for reading, we’ll be happy to see you next, leave a comment below.

Naijahotsongs

My Name Is Monday Ajom Nkpena, Am an entertainment blogger C.E.O Naijahotsongs.com. I started the race to blogging since 2019, and I love what am doing. Thanks for reading my info.

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