Commerce · Class 11 Commerce
Ch 23Channels of Distribution — Class 11 Commerce, concept-first.
A product is of little use to anyone until it actually reaches the person who wants to buy and consume it. A manufacturer sitting in a factory and a consumer sitting in a distant town are separated by three practical gaps: a gap of place (the goods are made in one location but wanted in many others), a gap of time (goo…
Key concepts
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Channel of Distribution
A channel of distribution is the route or set of interdependent organisations through which a product moves from the manufacturer to the final consumer.
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Chapter contents
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Meaning and Importance of a Channel of Distribution
A product is of little use to anyone until it actually reaches the person who wants to buy and consume it.
Types of Distribution Channels: The Direct Channel (Zero-Level)
Distribution channels are classified according to the number of independent middlemen — or "levels" — that stand between the manufacturer and the final consumer.
Types of Distribution Channels: Indirect Channels (One-Level, Two-Level, Three-Level)
Where a manufacturer wants to reach a large number of buyers spread over a wide area without building and staffing every point of sale itself, it brings in one or more independent middlemen.
Functions Performed by Middlemen in a Channel of Distribution
Middlemen are not merely people who "stand in between" a manufacturer and a consumer and take a cut; each type of middleman genuinely performs specific work that would otherwise fall on the manufactur…
Factors Influencing the Choice of a Distribution Channel
A manufacturer does not pick a distribution channel at random; the choice between a direct channel and one of the several indirect channels — and, among the indirect channels, between a shorter or a l…
Very Short Answer Questions
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Short Answer Questions
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Long Answer Questions
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Sample & Board Papers
Sample papers and previous-year board questions for this subject.
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- Q1A ________ is a mercantile agent to whom goods are entrusted for sale by a principal and takes physical possession of the goods but does not…Preview
- Q2Merchant Middlemen can be classified into ________ categories. (a) Five (b) Three (c) Four (d) TwoPreview
- Q3Who is a Middleman ?Preview
- Q4Who is the first middleman in the channel of distribution ? (a) Retailer (b) Wholesaler (c) Customer (d) ProducerPreview
- Q5Merchant middlemen can be classified into ________ categories. (a) Five (b) Three (c) Four (d) TwoPreview
- Q6An organisation carrying out activities to move goods from producer to consumer is ....... (a) Transport (b) Logistics (c) Channels (d) Mark…Preview
More questions
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- Q1A channel of distribution with no middleman at all, where the manufacturer sells directly to the consumer, is known as a: (A) One-level chan…Free
- Q2Which of the following is a genuine function performed by middlemen in a channel of distribution? (A) Manufacturing the product (B) Breaking…Free
- Q3In a two-level channel of distribution, goods move from the manufacturer to the consumer through: (A) A retailer only (B) A wholesaler only…Preview
- Q4A manufacturer of fresh dairy products chooses to sell through the shortest possible channel mainly because of which factor? (A) The cost of…Preview
- Q5Which of the following is an example of a zero-level (direct) channel of distribution? (A) A manufacturer selling through a wholesaler (B) A…Preview