Chapter 26 What Is Place?
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Distributor, Inc., and Jane’s Convenience
Store are the channel members for the apples.
Roberto could have chosen different channel
members to move the apples through the
channel of distribution. For example, Jordan
of Jordan’s Wholesale Apples might offer
Roberto a better deal than Tamar does.
Jordan might pick up the apples more often
and might sell them to more grocery stores
than Tamar does.
Retailers also include nonstore retailers.
A nonstore retailer is a business that
sells directly to consumers through ways
other than a retail store. Nonstore retailers
include mail order catalogers, TV shopping
channels, and Web sites. They also include
retailers who sell directly to customers by
sales representatives. Nonstore retailers
may have sales representatives who either
visit customers in their homes or call them
by telephone. Avon, Tupperware, and
Amway have long used their own sales
representatives to call on customers.
Think of a good you have purchased. Name
at least one of the channel members in the
channel of distribution for that good.
3
Reality Check
Supply Chain
A channel of distribution is like a
chain that links a raw material to the final
Channel of Distribution Example
General Channel Apple Example
Channel Members
Producer
Wholesaler
Consumer
Consumer
Grocery Store
Retailer
Apple Buyer
Apple Farmer
Jane’s
Convenience Store
You
Tamar’s
Apple Distributors, Inc.
Roberto’s
Apple Orchard
26-7
The most common channel of distribution for consumer goods includes a producer, a wholesaler, and
a retailer.