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State the term- Channels of distribution
You are aware that when a manufacturer of a product is located at one place, its consumers are located at innumerable places spread all over the country or the world. Manufacturer has to ensure the availability of his goods to the consumers at convenient points for their purchase. He may do so directly or through a chain of middlemen such as distributors, wholesalers and retailers. Path or route adopted by him for the purpose is called as channel of distribution. A channel of distribution hence, refers to the pathway used by manufacturer for transfer of ownership of goods and its physical transfer to the consumers and the user/buyers (industrial buyers).
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