Primark - Unit 7

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UNIT 7 PLACE

Channel of distribution

 The distribution channel is the set of institutions which participates in the marketing activities
undertaken in the movement of goods and services from the point of production to the point of
consumption. ~Rosenberg
 A channel of distribution is a set of interdependent organizations involved in the process of
making a product or services available for use or consumption. ~Busch & Houston
 It is the course taken in the transfer of title to a commodity. ~Boone & Johnson

Functions of distribution channels:

 They routinize decision and work


 They finance the process for moving goods from the producers to the consumers
 They are active participants in the pricing process
 They serve as channel of communication between the producers and consumers
 They assist in the promotional aspects of marketing
 They minimize the number of transactions in the system

Types of Distribution Channels

 Consumer Channels
 Industrial Channels

Consumer Channels

 Direct distribution channel


 Use of middle man
 Use of wholesaler and the retailer
 Use of agent

Industrial Channels

 The manufacturer selling directly to the industrial user


 Manufacturer assigning an industrial distributor
 The manufacturer dealing with agents

PRINCIPLES OF MARKETING: Place

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