Distributor

Distributor

Distributor

Distribution (or placement) is one of the four aspects of marketing. A distributor is the middleman between the manufacturer and retailer. After a product is manufactured, it may be warehoused or shipped to the next level in the supply chain, typically either a distributor, retailer or consumer.

A number of alternate ‘channels’ of distribution may be available:

* Selling direct, such as via mail order, Internet and telephone sales
* Agent, who typically sells direct on behalf of the producer
* Distributor (also called wholesaler), who sells to retailers
* Retailer (also called dealer or reseller), who sells to end customers
* Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They may be just as important for moving a service from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc.