Place and Promotion — Part 1: Channels and Physical Distribution: visual lesson, ISC Class 12 Commerce

Lesson

Marketing Mix: Place and Promotion

Part 1: channels of distribution, their levels, how to choose one, and physical distribution.

In this lesson you will

Draw zero-, one- and two-level channels of distribution
Explain the product, market, company and competitive factors affecting the choice of channel
Name the elements of physical distribution: order processing, transportation, warehousing and inventory control

Part 1 at a glance

Concept

A channel of distribution is the route through which goods pass from the producer to the final buyer, with the middlemen involved.

Table of three kinds of middlemen and what each does
Middleman	What it does
Wholesaler	Buys in bulk, stores, sells in smaller lots to retailers
Retailer	Sells to final consumers in small quantities
Agent or stockist	Holds stock or arranges sales in an area

Diagram

The level of a channel is the number of middlemen in it.