Distribution Channels for Consumer Products and Services
Distribution Channels for industrial products and services
Distribution Intensity
100
Buy large quantities of goods from manufacturers, store the goods and then resell these goods to retailers. Take title to the goods.
What is Wholsalers
100
TV stations that sell products to consumers. Buy products in set quantities and sell on programs. Customers phone in orders while watching
What is home shopping networks
100
Selling products at the production site, for example: Factory outlets, Farmers roadside stands
Sales force calls on consumers at home, for example:
Avon, Tupperware
What is a Manufacturer/Producer Directly to Consumer (Channel A)
100
Used most often for small standardized parts and operational supplies. Industrial wholesalers take ownership of the products, stock them, and sell them.
What is Manufacturer/producer to industrial distributors to industrial users (Channel B)
100
Achieve mass market selling. Used for convince goods
What is intensive distribution
200
Manage inventory and merchandising for retailers, billing the retailers only for what is sold
- Count stock
- File shelves
- Maintain store displays
- Provide racks for display in the store
What is a Rack Jobber
200
Buy manufacturers products and sell them through vending machines which are placed in locations at no charge
What are Vending Service Companies
200
Used for products that go out of style quickly like clothing and automobiles.
Chain stores, online retailers use this channel
What is Manufacturer/Producer to Retailer to Consumer (Channel B)
200
Small manufacturers may use an agent who represents the manufacturer for the sale of the goods. Agent coordinates a large supply of the product but will not take possession or title of the goods, they just sell the goods to the industrial wholesaler
What is Manufacturer/producer to agents to industrial distributors to industrial users (Channel C)
200
Work with selected intermediaries. Shopping and some specialty goods.
What is selective distribution
300
Own the goods they sell but do not handle the goods instead the manufacturer ships it directly to the buyers. They deal in bulk items such as coal, lumber, chemicals.
What is a drop shipper
300
Sell from a physical store
What is a brick-and-mortar retailer
300
Used for staple goods that are always carried in stock, styles do not change frequently.
Super market items
Flowers
Candy
Stationary supplies
What is Manufacturer/Producer to wholesaler to Retailer to consumer (Channel C)
300
Most often used form of industrial distribution
What is Direct Distribution
300
Work with a single intermediary. Specialty goods and Industrial equipment.
What is exclusive distribution
400
Work with several related (not competing) manufacturers in a specific industry. Get paid a commission based on what they sell.
What is an Independent Manufacturers Representative
400
Sell goods to the final consumer for personal use
What is a retailer
400
Manufacturers focus on making the product and leave the sales to others.
- Agents sell to the wholesalers
- Wholesalers store, sell, and transport the product to retailers
- Retailers sell to consumers
What is Manufacturer/producer to agents to wholesaler to Retailer to Consumer (Channel D)
400
Involves planning a product’s physical movement and the transfer of ownership from the producer to the consumer
What is distribution planning
400
Comprises acrivities for delivering the right amount of product to the right place at the right time
What is physical distribution
500
Do not own the goods they sell just act as intermediaries bringing together buyers and sellers
What is an agent
500
Use multiple methods to reach the consumer
What is a hybrid retailer
500
Manufacturers focus on production of goods and use an
agent to bring the buyers and sellers together. Examples:
Expensive cookware
Meat
Cosmetics
Supermarket items
What is Manufacturer/Producer to agents to Wholesaler To retailer to consumer (Channel E)
500
Product fits the needs for both consumers and industrial markets
What is Multiple Channel Distribution
500
Involves order processing, transportation, storage, stock handling, as well as inventory control of materials and products