1.

Channels of Distribution.

Answer»

Channels of Distribution:

  • Direct Sales and
  • Indirect Sale-Sale by Mediator.

Direct Sale: 

The producer himself supplies the product to the buyer.

Indirect Sale / Sale by Mediator: 

Indirect sale refers to the distribution system where in the producer supplies the product through one or more intermediates. It is called sale by Intermediates or Indirect Sale.

  • single Level Distribution System: In this distribution system retailer is the only mediator between producer and the consumer.
  • Double Level Distribution System: In this type of distribution system there are two intermediates; wholesaler and retailer between producer and consumer.
  • Three Level Distribution System: In this type of distribution system there are three intermediates; agent, wholesaler and retailer between producer and consumer.


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