Agents

These independent intermediaries help to sell a vendor’s products in return for commission, e.g. real estate agents.

Distribution (place)

The marketing process of getting the right products to the right customers in the right place and at the right time.

Distribution channel

Also known as a channel of distribution, this refers to the path taken for a product to get from the producer to the consumer.

Intermediary

A third-party person or business that offers distribution services as part of a channel of distribution, such as agents, wholesalers and retailers.

One-channel distribution network

This method of distribution involves the use of a single intermediary, such as an agent or retailers.

Retailers

These are commercial businesses that sell a manufacturer’s products directly to consumers.

Telemarketing

The use of telephone systems to sell products directly to the potential customers, such as insurance, movie tickets or package holidays.

Three-channel distribution network

This type of distribution channel uses three intermediaries. It often involves an agent who sells the goods to wholesalers on behalf of the producer. In turn, wholesalers sell to retailers.

Two-channel distribution network

This method of distribution involves the use of two intermediaries, usually wholesalers and retailers.

Wholesalers

These are intermediaries that buy products from a manufacturer and sell these in smaller quantities to retailers.

Zero-channel distribution network

Also known as direct distribution, this method does not use any intermediaries, i.e. the producer sells directly to the consumer.