Explain channels of distribution for consumer and industrial products and services.
Explanation should include identification of the primary channels of distribution for products and services and ways to determine an appropriate path for consumer and industrial goods from producer to distributor to consumer—a path which can vary depending on the final user and includes
- direct and indirect channels (e.g., wholesalers, retailers, and agents)
- intermediaries
- outlets
- storage
- transportation.
Process/Skill Questions:
- What is the difference between a consumer and an industrial user?
- What is the difference between a direct and an indirect channel of distribution?
- What types of products would be appropriate for each channel?
- What factors affect the choice of the distribution channel?
- What role do intermediaries play in the distribution channel?