times, and in appropriate quantities. The group of people (or organisations) who operate this process make up a

channel of distribution; if they are part of the production firm and are distributing direct to the consumers, this

can be further defined as a direct channel of distribution. Firms have to make choices about which type of

distribution channel is best for them, their product, and the consumers.

A distribution channel can involve various categories of middlemen/intermediaries: facilitators, providing

physical distribution (transport, storage, display), advertising, and financing; agents and brokers (paid by

commission) who find customers and perform negotiations, and merchant middlemen who buy, take title to, and

then resell products (at a profit). Functions provided by facilitators are generally necessary, while others merely

assist the process. Generally, zero-level (direct) up to three-level (with agents/brokers, wholesalers, and retailers)

channels are possible; for industrial products up to two-level (agents, and industrial distributors) channels are

dealing through retail intermediaries. Some consumers may wish to bypass this final intermediary stage, and buy

they can either establish a regional headquarters in this region (high start-up costs with high risk, lack of local

Some topics in this essay:
, Maturity Decline, direct channel, volume sales, channel distribution, direct channel distribution, physical distribution, rapid growth maturity, stages intermediaries, producers offer, larger scale operation, channel distribution costly, transport storage, distribution channel, selling direct, distribution costly,