| There are a number of channels of distribution | | | | to the manufacturer for bringing his product to the |
| available to the producer, which may be employed by | | | | ultimate consumer. Efficient distribution at the least cost |
| him to bring his products to the market. Consumer | | | | and attaining the desired volume of sale can be |
| goods may be distributed generally through channels, in | | | | secured only after experience, study and analysis. The |
| each of which the manufacturers may use the sales | | | | notice of the product, its unit value, its technical |
| branch or sales office as the additional alternative. One | | | | features, and its degree of differentiation from |
| of the channels used is Producer-Consumer, where no | | | | competitive products are the factors which may limit |
| middleman is involved. Sales are made from house to | | | | the number of potential channel alternatives. |
| house or by direct mail. | | | | A retailer, as the name indicates, does retailing, which is |
| A second channel is Producer-Retailer-Consumer, by | | | | to say he sells to ultimate consumers. In the |
| which goods may be purchased directly from | | | | distributional hierarchy, retailers are below the level of |
| manufacturers. Retail stores may also be opened by | | | | stockists, distributors, and wholesalers. Sometimes, |
| manufacturers by this channel. | | | | retailers are termed dealers or authorized |
| A third channel is | | | | representatives. The retailer often operates in a |
| Producer-Wholesaler-Retailer-Consumer, which is the | | | | smaller territory or at his specific location; earns lesser |
| traditional and most economical channel. Penultimately, | | | | commission compared to higher levels in the channel; |
| there is Producer-Agent-Retailer-Consumer, in which | | | | he does not carry out stock holding and sub-distribution |
| many producers use manufacturing agents, brokers, | | | | functions. |
| etc. for reaching the retail market. Finally, there is | | | | A stockist or distributor or wholesaler is also a large |
| Producer-Agent-Wholesaler-Retailer-Consumer, where | | | | sized operator but not on par with the marketer or |
| the services of agents are utilized by the smaller | | | | sole selling agent in level, size and territory of operation. |
| retailers, who purchase from a wholesaler and sell to | | | | Stock holding and sub-distribution, as per the policies |
| small stores. | | | | laid down by the manufacturers or the marketers, are |
| A large number of channels of distribution are available | | | | the main functions of stockists/distributors. |