Name: Unequal Income Distribution in the Market
Uploaded: 2019-07-19
Duration: 4 min 28 s
Description: The market fulfills our needs. However, it is different for everyone. Those getting a livelihood from the market have unequal distribution of profit.

Question

Explain any one type of distribution channel.

Accepted Answer

There are two types of distribution channels namely, direct and indirect channels of marketing.

Indirect Channels:

When goods and services are sold through mediator or middleman, then an indirect channel of distribution comes into action.

Retailers, Wholesalers, Retailers and Wholesalers and Agent, wholesalers and retailers are the four types of indirect channels.

Retailers: They are engaged in retail business and producers directly supply their goods to them. There is no involvement of the wholesaler.

Wholesalers: They sale and purchase goods in bulk quantities and directly sell these goods in small quantities to the ultimate consumers. There is no involvement of retailers.

Retailers and Wholesalers: It follows a chain process. The producers sell their goods directly to the wholesalers in huge quantities and then wholesalers sell these goods in small quantities to the retailers. The retailer then sells it to the consumers.

Agent, wholesalers and retailers: It also follows the chain process, the producers sells goods to the agents who in turn sell it to the wholesaler. The wholesaler then sells the goods directly to the retailer and then at the last step the retailer sell it to the consumer directly.

Explain any one type of distribution channel.

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