What is meant by 'indirect channels of distribution'? Explain any two methods of indirect channels of distribution.
What is meant by 'indirect channels of distribution'? Explain any two methods of indirect channels of distribution.
Indirect channels: When a manufacturer takes help of one or more middlemen to move goods from production place to the consumption place, the distribution channel is called an indirect channel.
Following are the types of indirect channel:
(i) One level channel: In this method, an intermediary is used. Here,manufacturer sells the goods directly to the retailer instead of selling it to agents or wholesalers.This method is used for expensive products.
(ii) Two levels channel: In this method, the manufacturer sells the material to the wholesaler, wholesaler to the retailer and the retailer to the consumer.
Here,wholesaler after purchasing material in large quantity from the manufacturer sells in small quantity to the retailer.Then retailer makes the products available to consumers.
This medium is mainly used to sell consumer non-durable goods like soap, tea, salt, sugar, ghee,etc.
Indirect channels: When a manufacturer takes help of one or more middlemen to move goods from production place to the consumption place, the distribution channel is called an indirect channel.
Following are the types of indirect channel:
(i) One level channel: In this method, an intermediary is used. Here,manufacturer sells the goods directly to the retailer instead of selling it to agents or wholesalers.This method is used for expensive products.
(ii) Two levels channel: In this method, the manufacturer sells the material to the wholesaler, wholesaler to the retailer and the retailer to the consumer.
Here,wholesaler after purchasing material in large quantity from the manufacturer sells in small quantity to the retailer.Then retailer makes the products available to consumers.
This medium is mainly used to sell consumer non-durable goods like soap, tea, salt, sugar, ghee,etc.
