#1
Grower, provider, or manufacturer of goods or services
Producer
Person who uses goods and services
Consumer
Path straight from producer to consumer or industrial user
Direct channel of distribution
Business or person who helps move goods and services from the producer to the consumer
Intermediary
Intermediary that functions much the same as wholesalers do for consumer goods
Industrial distributor
Intermediary that assists in the sale of goods
and services from producer to wholesaler
Agent
Business that purchases goods and sells them to consumers
Retailer
Business that purchases goods and sells them to retailers
Wholesaler
Channel used to reach small retailers;
producer gives up selling responsibilities
Producer to agent to wholesaler to retailer to consumer
Most common route for industrial goods
Producer to industrial user
Items that will be consumed by the industrial user
Industrial goods
Items that will be used by ultimate consumers
Consumer goods
Channels of distribution that involve the use
of intermediaries
Indirect channels
of distribution
Business that buys goods/materials/services used to make other goods or in the operation of the business
Industrial user
Path a good or service takes from producer to consumer or industrial user
Channel of distribution
Industrial goods channel used for items with high unit prices; producer gives up selling responsibilities
Producer to agent to user
Channel used to reach large retailers; producer gives up selling responsibilities
Producer to agent to retailer to consumer
Industrial goods channel used for items with low unit prices; producer gives up selling responsibilities
Producer to agent to industrial distributor to user
Channel used to reach large retailers; producer maintains selling responsibilities
Producer to retailer to consumer
Most common channel for consumer goods
Producer to wholesaler to retailer to consumer