• Often it is thought of as the route taken by a product as it moves from the producer to the consumer or other ultimate user. • Other define it as the path taken by the title to goods as it moves through various agencies. • A loose coalition of business firms that have banded together for purposes of trade.

Movement of the products through these various intermediaries.

May view the flow of the title to the goods as the proper delineator of the marketing channel.

may view the marketing channel as the collection of Web sites that they use when shopping online, or in the case of conventional channels, the store they patronize.

consists of firms that are involved in extracting, growing or making products.

are independent businesses that assist producers and manufacturers (and final user) in the performance of negotiatory functions and other distribution tasks.

Types and Kinds of Wholesalers

are f ims engaged primarily in buying, taking title to, usually storing and physically handling products in relatively large quantities.

are also independent middlemen who do not, for all or most of their business, take title to the goods in which they deal. They are actively involved in negotiatory functions of buying and selling while acting on behalf of their clients. They are usually compensated in the form of commissions on sales or purchases.

are owned and operated by manufacturers but are physically separated from manufacturing plants. They are used primarily for the purpose of distributing the manufacturer's own products at wholesale. Some have warehousing facilities where inventories are maintained, while others are merely sales offices.

Top 5 Best Wholesale Companies and Suppliers in Philippines

The following types of distribution tasks for Producers and Manufacturers:

is provided by merchant wholesalers to manufacturers because the markets for the products of most manufacturers consists of many customers spread over large geographical areas.

is a valuable service provided by merchant wholesalers. If a manufacturers product is sold to many customers over a large geographical area, the cost of covering the territory with its sales force can be prohibitive.

Merchant wholesaler take title to, and usually stock, the products of the manufacturers whom they represent. By doing so, they can reduce the manufacturers financial burden and reduce some of the manufacturers risk associated with holding large inventories.

performed by wholesalers is very helpful to manufacturers because many customers buy in small quantities.

Wholesalers are usually quite close to their customers geographically and in many cases have continuous contact through frequent sales calls.

is the f hal distribution task that wholesalers provide for manufacturers. Products may need to be exchange or returned, or a customer may require setup, adjustment, repairs or technical assistance. This extra support by the wholesalers, often referred to as value added services.

also referred to as manufacturers representatives or rep. For example specialize mainly in performing the market coverage and sales contact distribution tasks for manufacturers.

usually perform more distribution tasks than manufacturers representatives. They provide more market coverage, sales contact, order processing, marketing information, product availability, and customer service.

define as a go-between or a party who brings buyers and sellers together so that a transaction can be completed.

Distribution tasks performed by Agent Wholesalers

consist of business firms engaged primarily in selling merchandise for personal or household consumption and rendering services incidental to the sale of goods.

Internet-based online retail channels.

Distribution task: 1.Offering manpower and physical facilities that enable producers, manufacturers, and wholesalers to have many paints of contact with consumers close to their places of residence. 2. Providing personal selling, advertising and display to aid in selling suppliers products 3.Interpreting consumers demand and relaying this information back through the channel. 4. Dividing large quantities into consumer-sized lots, thereby providing economies for supplies (by accepting relatively large shipments) and convenience for consumers. 5.Offering storage, so that suppliers can have widely dispersed inventories of their products at low cost and enabling consumers to have close access to the products of producers, manufacturers, and wholesalers 6. Removing substantial risk from the producer and manufacturer (or wholesaler) by ordering and accepting delivery in advance of the season.

Are business firms that assist in the performance of distribution tasks other than buying, selling and transferring title. ROLE:They are subcontractors to whom various distribution tasks can be farmed out based on the principle of specialization and division of labor.

Here are some of the more common types of facilitating agencies:

firms offering transportation services on a public basis such as United Parcel Service (UPS) and Federal Express as well as the U.S. Post Offices.

consist mainly of public warehouses that specialize in the storage of goods on a fee basis.

are firms specializes in order fulf Ilment tasks. For example Catalog Resources Inc.

are firms that specialize in providing logistics services to companies or organizations that are not capable or who find it more convenient and ef tient to let an outside frm perform most or all of the distribution

offer the channel member expertise in developing promotion strategy.

consist of f ims such as banks, finance companies, and factors that specialize in discounting accounts receivable.

provide the channel manager with a means for shifting some of the risks inherent in any business venture, such as fire and theft losses, in-transit damage of goods and, in some cases, inclement weather.

most large cities now have a number of __________ offering a wide range of skills. The channel manager can call these firms to provide information when his or her own fim lacks the necessary skills to obtain marketing information relevant to distribution.

The three basic divisions of the marketing channel are:

Two basic levels of operations: