There are many different types of “Channels of Distribution” also called as “Marketing Channels” which are involved in the marketing process. They are very important in the business world, because each of them play a key role to be successful in the marketing industry. One of the most important channels is the “Middleman” also known as “Marketing Intermediary” which has various types of functions, but the two main ones are wholesalers and retailers, which are in charge of selling. The only difference is that, wholesalers sell the products to other firms, which maybe to the retailers, while retailers sell the products to consumers.
“Types of Middleman”
The other types of “Middleman’s” are “Merchant and Functional Middleman’s”. These two types of channels are in charge of two different types of duties, the Merchant Middleman is in charge of buying the products from other buyers, while the Functional Middleman takes charge in transferring the product to their owners, but it does not have the power to do any type of usage of the product.
The supply chain is very familiar to Functional Middleman, because “It is the process and organizations of activities that convert and move the goods from raw materials to end users”. The supply chain management is a channel which is based on long-term partnerships among members working together to create a distribution system which reduces inefficiencies, costs, and redundancies while creating a competitive advantage and satisfying customers. I am providing a simple supply chain diagram to give a little more detail about what The Supply Chain looks like, to give people who don’t know an idea of the process.
“Most commonly used channels”
There are six important most commonly used “Channels that are used to move consumer and businesses products”, the “Channels for Consumer Products” are:
1) Producer to consumer,
2) Producer to retailer to consumer,
3) Producer to wholesaler...