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1. Distribution channel is the main strategy that helps dealers to penetrate the target
market.
2. A wide diversity of factors such as nature of the products, market, and business,
among others, requires to be analyzed to decide the most convenient distribution
channel.
3. Market is the interchange of prices in which some people offer any merchandise
and others buy it, paid a negotiated price.
4. Consumers obtain services or goods to satisfy their needs.
5. Companies get together people who have similar goals and expect them to satisfy
the consumers’ needs.

Strategic plan of distribution

Distribution Producer Intermediary Consumers

channel

The initial point of the

It is the way that goods or People or firms that
distribution channel; The commercial target
services use to pass from mediate in transaction
people or companies who of the distribution
the producer to the end between producer and
manufactures goods or channel
consumers. consumers.
services.
Let’s read
 Types of
distribution
channel

Indirect channel
Direct channel
A distribution channel is often
indirect, because there are The producer or manufacturer sells
intermediaries between the the product or service directly to
supplier and the user or consumers without intermediaries.
consumer.

Manufacture - consumer

Short channel Long channel Let’s see in detail some

Manufactures – Retailer- information about intermediaries.
Manufacture – wholesale- Retailer -
Consumers
Consumer
 Example: A hairdresser Example: The marketing of automobiles,
provides the service and sells appliances, designer clothes, among,
it without intermediaries. require who could have exclusivity for
area sales.

Vocabulary