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Thursday 21 January 2010

Channel of Distribution

The Channel of Distribution are the routes along which good flow from produce to customer. In other words we can describe it as to the course taken in a transfer of title to the commodity constitute its channel of distribution.
We can classify the channel of distribution into two groups
  1. Direct Channel
  2. In-Direct Channel
Direct Channel :

Producer>>>>>>>>>>>>>Consumer

Indirect Channel:

Producer>>>Retailer>>>Consumer
Producer>>>Wholesaler>>>Retailer>>>Consumer
Producer>>>Middlemen>>>Wholesaler>>>Retailer>>>Consumer

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