Although some aspects of the physical distribution are contained in these functions, more discussions on physical distribution are in separate subunit of this chapter. From the point of production to that of consumption, a lot of activities take place. This is to ensure satisfactory dealings among the stakeholders in the channel of distribution. As a way to achieving the aforementioned, the distribution channel members perform the following functions.

1) Marketing Information; information from the producer is usually past to other channel members through intermediaries. Such information rangers from the ones emanating from the consumer's that requires producers attention or from the producer to the consumers. Example consumers complain on the low quality of products or increase in price of products sold to them. Producers explanation on increase in price appreciation of consumers to buy substitute goods supplied to them in absence of the usual ones they purchase with reasons are another practical examples.

2) Storage Function; the producer in most cases do not have enough accommodation or provision with regards to the storage, preservation and warehousing of goods which they produce. Channel intermediaries such as wholesalers, distributors and retailers take charge of the storage, preservation and warehousing of goods which they procure from the producers until the time they are needed by buyers. This allows the producer to concentrate on production aspect and makes it possible for evenly availability of goods during harvest all seasons of plenty and lean seasons of the year. However, some producers still combine production and the above mentioned functions performed by the wholesalers and retailers.

3) Transportation function; the channel members such as producers, wholesalers and manufacturers are involved in the movement or transportation of goods from initial place of production or processing to a place of need and consumption or end use. This may entail moving goods internally within a country or across national boundaries. The availability of goods produced far away from our locality in our shops or the ones produced outside our country is a result of this transportation function. Ehikwe (2002:307), in support of this stated, that the impact of distribution on product availability to consumers has been enhanced with the spirit of cooperation to consumers collaboration among the world communities, formation of economic blocs and improvement on methods of production.

4) Finance Function; this involves the pre financing of the production or even the sales of the goods and services found in the shop and market places. Financial well-to-do channel members, such as wholesalers and retailers take the responsibility of financing the production of the goods they require, if the producer of such goods have not got the fund needed to embark on the production of the goods. In order perceptive such channel member can grant credit sales of their goods and services to buyers. This makes it possible for the financially weak buyers who wish to obtain such goods to be in possession of the goods at the time they required the goods.

5) Bulk Breaking; this involves buying in large quantity and selling in smaller units. A good number of middlemen such as wholesalers and wealthy retailers buy foods in bulk and sell them in smaller quantities. This is largely to meet with the forms preferred by the ultimate consumer or other buyers.

6) Assortment Function;  the wholesalers and retailers collect different types of products from different producers and make them available to their customers. This offers Both the buyers and producers some advantages. Evans and berman 1982 supported this, and hold that it makes it possible for those producers and manufacturers who due to cost consideration restrict themselves to the production of just one type of product, to have their products offered to buyers along with those of their counterparts, thereby facilitating easy comparisons of these products, joint purchase of complementary products and quicker sales turnover that results from the attractiveness of increased productivity or assortment. Moreover, buyers are offered the opportunity to choose from a variety of product and to make their purchases under a roof. Example, buyers of such complementary products such as tea, milk and sugar, do buy these items if they are sold in one store. This is because it is economically cheap to buy all of them under a particular store.

Other Channel Function Are;

a) the collection of widely scattered goods.

b) increasing buyer's standard of living )through export and import promotion).

c) risk bearing, et c.

The utilities created by distribution according to johnson 2008 213 are form utility, place utility, time utility and ownership utility.

The four types of distribution channels as identified by Adirika et al (2001:205) are;

1) Direct channel.

2) Indirect channel.

3) Integrated channel.

4) Non integrated channel.

1) Direct Channel; a direct distribution channel occurs when the producer sells directly to the consumer or industrial uses, with no middleman intervening between the producer and end users or industrial users. This refers as direct channel because of the absence of non involvement of intermediary between the producer and consumers or industrial users. Direct channel is mostly applicable while distributing industrial goods though not restricted to that because by bus, medical doctors, restaurant operators, e.t.c, sell their goods and services directly to consumers. Others include, mail order selling, telephone selling, mass media selling btc.

2) Indirect Channel; by using this type of distribution, producers or manufacturers sell its goods and services to other channel members, intermediaries or middlemen example producer to retailer retailer to consumer. From the above, retailer is the intervening middleman.

3) Integrated Channel; integrated channel is where both the manufacturer and middle men are managed by the same organisation or resolved to co-operate in one way or the other for purpose of achieving a definite result. Integration can be horizontal or vertical. Horizontal channel integration refers to when two or more channel intermediaries at the same level of operation are combined under one management or agreed to co-operate between or among themselves for a joint marketing operations and resultant benefits. For example, where a little member of a channel integrates with another retailer to achieve some marketing advantages, vertical integration on the other hand is where a channel member merges with or assumes the function of a member whose function is different from but proceeds or succeed its function. It is when two or more channel intermediaries example manufacturer, wholesaler and retailer at different levels of the channel agree and combined or integrate their efforts and programs under a management in order to achieve a better marketing objectives. Example, a manufacturer or producer combining with a wholesaler or retailer. Such integration may be through the acquisition of an existing dependent unit or through the expansion of functions.

Manufacturers or producers of product and services make them reach their customers through various avenues known as channel of distribution or marketing channels. According to Zikmund et al (1986:312), channel oriented from a French word called Canal, which refers to a parr through which something moves. Distribution has been variously defined by many authors, among these definition of distribution channel found in business and marketing literature include;

1) Channel of distribution are the routes or path through which goods and services pass as they move from their producers or manufacturers to their buyers or consumers.

2) It can be defined as a conduit pipe through which goods or services reach the customers or users.

3) A path way taken by goods as they flow from the point of production to their point of consumption.

4) The medium through which goods or services pass from the initial production point to the point where they are required or needed, which is mainly through marketing intermediaries.

 The channels of distribution or marketing channel refers to the system of marketing institutions through which goods or services are moved from the producer to the consumer. This movement at times involves physical product transfer or intermediate marketing institution taking tittle with the goods without handling them. Both the producer and consumer or buyer of the goods or services as the case may be, are as well members of the channels of distributions. The producer consumer and other channel intermediaries constitute the channel members through which product tittle flow from producer to consumers. A combination of aforementioned channel members constitute channel structure.
Although the task of tittle transfer and exchange of physical possession (transportation) generally from the same channel of distribution, they do not necessarily need to follow the same path. Example; where a distributor or merchant wholesaler gets an order to supply 100 cartons of star lager beer and decides to buy directly from the brewery (manufacturers factory). Under this arrangement,the whole sales or the distributor takes tittle to the goods automatically at the very point the goods (merchandize) was paid for and loaded into the lorry,but the goods its self followed directly from the brewery or the manufacturers warehouse directly to the consumer at  a drop shipment, without necessarily going first to the warehouse of the wholesaler who have previously taken tittle to the goods. This is a clear explanation where the route of tittle transfer is different from the route of physical flow of goods. Additional example could be where an agent under a principal instruction or arrangement, will not physically handle his principal's goods but succeeds in effecting the transfer of tittle of goofs to the wholesaler, retailer or even the consumer. To effect this the goods are shipped directly from his principal which could be a manufacturer to any of the channel members (the wholesaler, retailer or consumer) without first passing through the agent. The individuals,group of individuals or organisations existing between the producer and the final consumer, who have no speciality in the production of goods and services, but in the task of taking tittle, or assist in transferring tittle to the particular goods or services as the goods move from the producer to the ultimate consumer or last owner are called or known by any of these names; middlemen, channel members of channel intermediaries. As earlier stated, both the producers and consumers of goods and services are among the channel members. This is because they form the starting point and the end point of a channel respectively, when it comes to channel tasks or functions. Distribution function creates form,time,place as well as possession utilities to products and services. The issue of engaging a number of channel intermediaries is dependent on manufacturer's discretion. A manufacturer's quest to engage channel intermediaries is to achieve its distribution objectives. However,where he feels he can achieve that action alone, the manufacturer can go ahead performing the task of transferring the tittle to the goods or ensuring movement of goods from the point of production (producer) to the final users (consumers).
[10/3, 5:18 AM] Onyi Sis Official: SELECTION AND WORKING WITH INDIVIDUAL MIDDLEMEN

When all is said and done, middle men can often make or break a manufacturer. In most cases middle men are the ones who personally contact the final consumers the ultimate consumers or industrial users. Thus the success of manufacturers distribution effort depend alternately upon how well 1) manufacturer select their individual middlemen and 2) work with these distributors and dealers. When selecting a middleman, the key factor to consider is whether the middle man sells to the market that the consumer wants to reach. Then the manufacturer should determine whether the middleman product mix, promotional activities, and customer service are all compatible with the manufacturers needs. There is a community of interest in what each organisation manufacturer and middle man expect from the other in terms of supporting of an effective total marketing program. A series of rewards and penalties may be instituted by either party to encourage the order to perform as expected. The major reward for either party is increased profit. Probably the most powerful penalty a manufacturer can impose is to terminate a sales agreement with a dealer. A middleman, in turn can penalize a manufacturer by not promoting products adequately, by pushing a competitor's product, or ultimately by dropping the manufacturers line entirely. To improve the coordination of their intra channel activities, manufacturers and their middlemen should develop a communication system. The system provides an information exchange on inventory stock, market conditions, and other marketing data important in day-to-day working relationships.

    The marketing structure of a country spells out the framework for the performances of those activities geared towards the identification and satisfaction of consumers need in that country.
The framework will comprise the individuals and groups engaged in production and distribution of goods and services as well as the regulatory or control mechanism put-together to ensure compliance with the objectives of ultimate consumer satisfaction. The marketing institutions, on the other hand, are those individuals and organisations which help to facilitate the discharge or performance of marketing functions. These include transporters, banks and finance houses, advertising public relations agencies, clearing and forwarding agents, and marketing consultants among others.

   Nigeria is a mixed economy. This means that both the government and private initiatives are involved in producing and distributing goods and services for the satisfaction of consumers in the country. In addition to engaging directly in the production and distribution of goods and services, the government also regulate the flow of business in nigeria through its feeding, laws and moral suasion or appeals to business organisation.

 In spite of dwindling earnings and directives from the international monetary fund to the contrary, government in nigeria is a big business. Government expenditure to a great extent determines the pace of business in the country. A great proportion of goods and services being enjoyed locally in nigeria and exported that in foreign exchange is produced directly buy government owned companies and institutions. The generation and distribution of electric power and water are being undertaken almost solely by the government. Some business such as National Electric Power Authority NEPA, Power Holding Company of Nigeria PHCN Nigerian Railway Corporation and Nigerian Airways are fully owned by the federal government. Some others are jointly owned by the government and nigerians of foreign technical partners. Though the government is invested from some of these businesses through the privatization policy between 1986 to date, it is still neck deep in commercial activities through its companies or parastatals.

The overall initiatives is greater than government initiative in the provision of goods and services in Nigeria. Investment from foreigners was greatly reduced as a result of Nigerian enterprises promotion decree popularly known as indigenization decree of 1972, amended in 1976 as revised in 1977. However, this decree was somehow replaced by 1995 Federal budget. Great efforts are being made to attract foreign investment into the country, most especially in the high technology manufacturing sector, not much has been achieved over the years because of the political destruction of the country and the facts that both government and private individuals and organisations still find it easy to import. A large proportion of the manufactured products in Nigeria are imported.

   Distributive trade in nigeria is mainly in the hands of the private sectors. Prior to the promulgation of the indignation decree, big time distribution wholesaling and retailing was mainly in the hands of foreigners, most especially the ubiquitous Labanese traders.  Government not sponsored distribution agencies, such as Nigerian National Supply limited and NNSL have failed to live up to explanation because of inadequate funding, too much interference by government, and the high corruption rate prevalent in the Nigerian society. Many business people have found the distributive trade more attractive than manufacturing. Government efforts to correct this seems to be yielding fruit. Nnewi fondly called taiwan of Nigeria which once specialised excessively in the distribution of goods, most especially motor spare parts, is noted by many high-technology manufacturing industries, thanks to the Structural Adjustment Program SAP of 1986.

  Though the goverment tries to use its law and agencies to control distribution business in Nigeria, its efforts have met an impregnable wall of resistance. Traders arbitrary increase prices, irrespective of manufacturers price directive and the efforts of the government to curb these excesses.

   The blame is put on the inflationary spending and practices of the government. If the government increases salaries and the charge of prices of it services and products, why should it discourage business people from doing same with their goods and services. In addition to this, and foreign goods such as stock fish, blue films, fabrics, and second hand clothes, shoes and bags are flagrantly being displayed for sale in the open market. The hues and cries of the automobile assembly plant and licensed importers of automobiles and spare parts to stop the infiltration or second hand vehicles and spare parts (popularly known as Belgium or Tokumbo) have remained unheard. People strongly believe that their very survival depends on those products from overseas, since there are no local alternatives, and the unused alternatives are unaffordable to them.

   There is need to mention that the few big manufacturing industries in nigeria are to a large extent concentrated in lagos and nearby towns, such as author, and to a small extent in port harcourt, kaduna, aba, nnewi and a few other big cities. The distributive trade was concentrated in the hands of aba onitsha and nnewi based business men. In the past. However, changes are gradually taking place as others are now getting more involved. It is also worthy of note that the biggest retail outlets in Nigeria are still owned and operated by foreign based firms, such as leventis, kings way, K.C chellarms,UTC,John Holt, Beta and Leonard.

  A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. It is the coming together of persons voluntarily to solve their individual and collective needs.
  The birth of cooperative in nigeria can be traced from the period of the colonial masters who after its success in indian experimented it in nigeria around 1935 and discovered it loud able success.
 Both the federal and state governments in nigeria have come to realise the immense contribution of cooperative societies in the development of rural areas as well as getting essential goods to urban dwellers. Government at all levels have encouraged the formation and growth of cooperative societies in order to use them as agents for social and economic mobilization and development in the rural areas.
   Generally speaking, cooperative societies in nigeria a multi purpose in nature, engaging in both productive and marketing activities. There are producers, gift and credit consumer cooperative societies. A producer cooperative can go into the group production of food, fish, cash crops, crafts, soap, detergent, among others and market the output. A thrift credit cooperative encourages its members to save regularly on agreed upon times and conditions, and also extend credit to members. Consumer cooperatives operates consumers shop buy in bulk from manufacturers or government agencies, and sell in small quantities to their members. They deal on such essential commodities as milk, sugar, food drinks, fish, meats, soaps and detergent. Details on types of cooperative will future after brief structure of cooperative societies.
    Cooperative in Nigeria are organised into the following structures;

1) primary cooperation; which operator do village or community levels, combining to form cooperative unions at the local government levels.

2) Secondary cooperative; all combinations of primary operatives, forming unions at the state levels, called cooperative federations.

3) State apex; (federation) organisations which combine to form the co-operative federation of nigeria, caring for all the extension services that are provided for the societies at the state levels by the trained staff of the Department of Cooperative Ministry of Commerce and Industries. Cooperative societies had in the past greatly helped to mobilize fund for rural development through their thrift and credit activities. But they high inflationary rate in the present-day corporation and economic problems in this country seem to have made it difficult for co-operative credit societies to mobilize funds and collect debts from members. Consumer cooperative are presently not receiving adequate attention from the government, unlike in the days of high scarcity of consumer products 1983 to 1986 when the government made Nigerian national supply company and manufacturers to distribute a portion of their products to them.

In running cooperative society and consumer shop, the early cooperative duro Rochdalers, device certain rules and practices and procedures, to guide them. In the course of time they decided to make some of the rules and practices their guiding and binding principles of cooperation. It was the rules and practices that we are raised to the status of principles which were to be hard headed by rock toddler in running their cooperative society. Echo 2001 six principle as a guiding policy, a philosophy, a practice which is highly respected or an idea which is regulated as valid independent of time and circumstances, a generalization accepted as time after having been deducted from fact many times observed and verified by experience. The Rochdale principles of operation has been accepted and regarded as the cooperative principles and where to be and headed to buy cooperative worldwide. Those principles according chukwu 1960 3 to 5 include;

1) open a voluntary membership.

2) democratic management and control.

3) limited returns on share capital.

4) patronage refunds in proportion to turnover.

5) neutrality in race religion and politics.

6) cash sales of goods at market prices.

7) sale of only pure, unadulterated goods.

8) continuous education of members.

The price of a product is the amount of money which eats buyers have to pay to obtain it. It is the exchange value of the product. The pricing of products, is of great importance to any organisation because of the effects of the set price on such factors as sales, profitability, salaries and wages, growth of the company, competitors reaction, government actions and consumer reaction. The general level of price in the country affects consumers welfare, the national economy, and the business growth. Therefore, inserting price for products, a company will have to take into consideration both micro and macro environmental factors which have interest in it prices.

    Price inflation is very high in nigeria. The prices of virtually all products price almost on daily basis. Though there are government legislatures to control price, these are not usually implemented. Government implementation of backpacking and guilty conscience. The government itself increases its fees, charges, petrol price, highway gates toils and engages in expenditures that encourage inflation. The price of a product of government owned companies, such as electricity telephone and fertilizer have also been increasing rapidly over the years. The increases in the price of these goods and services have multiplier effect on the prices of products produced by the private sector. Government can set the ball rolling in price control by controlling the prices of its goods and services. The private sector will then follow.

The question is often asked,why is the professional marketer always talking of consumer satisfaction, instead of paying more attention to profit making (maximization of profit)? The reason is that the market knows that if he satisfies the consumer,they will certainly come back to purchase his product. In fact they will become loyal to purchasing and using his products and this surely will lead to making profit if not in the short run,but in the long run. In short customers satisfaction leads to continuous patronage and hence to high profitability for the organisation.

Another reason why the marketer emphasizes consumer satisfaction is because business has become very competitive. There may be several or many organisations selling the same or similar products. To remain in business,therefore, one should be able to satisfy his customers. In the modern competitive marketing environment,any firm that does not satisfy its consumers will gradually be pushed our of the market by competitor who offer better or much more satisfactory product to consumers.

It is imperative that the marketers operating in Nigeria should shed off or abandon the prevailing tendency whereby businessmen over emphasize profitability,to the neglect of consumer satisfaction. Businessmen or made meter who emphasize profitability more than consumer satisfaction should realize that the foundation or basis for making continuous stream of profit in modern marketing strategy is by offering consumers the best "package" of benefits of satisfaction. Marketers must think of consumers satisfaction before they think of profit.

Any person who has trained or studied to be a professional marketer must have the right orientation and behaviour,he must always think customer. He must always ask questions; "how will I satisfy my customers?" "What will I do to offer the best package of satisfaction to my customers?" A professional marketer must make it a point of duty to satisfy his customers. He must never do any thing to frustrate,cheat or exploit customer.

Any person who calls himself a professional marketer but is not satisfying his target customers or market,is not what to be called a marketer. What qualify a person to be regarded as professional marketers is his obligation or commitment satisfying consumers. We can not regard a person who had the notorious intention or plan of exploiting or cheating the consumers as a professional marketer. A professional marketer never thinks or plans how to cheat his customers, instead he plans or think of how to satisfy his customer in the most excellent way.

Professional marketers do things logically. They first think about customers satisfaction,before thinking of profit making. Professional marketers know that everything follows its logical sequence, first you satisfy the consumer and then profits will follow. Profit is the result of satisfying the customers needs and wants.

Manufacturers or producers of product and services make them reach their customers through various avenues known as channel of distribution or marketing channels. According to Zikmund et al (1986:312), channel oriented from a French word called Canal, which refers to a parr through which something moves. Distribution has been variously defined by many authors, among these definition of distribution channel found in business and marketing literature include;

1) Channel of distribution are the routes or path through which goods and services pass as they move from their producers or manufacturers to their buyers or consumers.

2) It can be defined as a conduit pipe through which goods or services reach the customers or users.

3) A path way taken by goods as they flow from the point of production to their point of consumption.

4) The medium through which goods or services pass from the initial production point to the point where they are required or needed, which is mainly through marketing intermediaries.

 The channels of distribution or marketing channel refers to the system of marketing institutions through which goods or services are moved from the producer to the consumer. This movement at times involves physical product transfer or intermediate marketing institution taking tittle with the goods without handling them. Both the producer and consumer or buyer of the goods or services as the case may be, are as well members of the channels of distributions. The producer consumer and other channel intermediaries constitute the channel members through which product tittle flow from producer to consumers. A combination of aforementioned channel members constitute channel structure.
Although the task of tittle transfer and exchange of physical possession (transportation) generally from the same channel of distribution, they do not necessarily need to follow the same path. Example; where a distributor or merchant wholesaler gets an order to supply 100 cartons of star lager beer and decides to buy directly from the brewery (manufacturers factory). Under this arrangement,the whole sales or the distributor takes tittle to the goods automatically at the very point the goods (merchandize) was paid for and loaded into the lorry,but the goods its self followed directly from the brewery or the manufacturers warehouse directly to the consumer at  a drop shipment, without necessarily going first to the warehouse of the wholesaler who have previously taken tittle to the goods. This is a clear explanation where the route of tittle transfer is different from the route of physical flow of goods. Additional example could be where an agent under a principal instruction or arrangement, will not physically handle his principal's goods but succeeds in effecting the transfer of tittle of goofs to the wholesaler, retailer or even the consumer. To effect this the goods are shipped directly from his principal which could be a manufacturer to any of the channel members (the wholesaler, retailer or consumer) without first passing through the agent. The individuals,group of individuals or organisations existing between the producer and the final consumer, who have no speciality in the production of goods and services, but in the task of taking tittle, or assist in transferring tittle to the particular goods or services as the goods move from the producer to the ultimate consumer or last owner are called or known by any of these names; middlemen, channel members of channel intermediaries. As earlier stated, both the producers and consumers of goods and services are among the channel members. This is because they form the starting point and the end point of a channel respectively, when it comes to channel tasks or functions. Distribution function creates form,time,place as well as possession utilities to products and services. The issue of engaging a number of channel intermediaries is dependent on manufacturer's discretion. A manufacturer's quest to engage channel intermediaries is to achieve its distribution objectives. However,where he feels he can achieve that action alone, the manufacturer can go ahead performing the task of transferring the tittle to the goods or ensuring movement of goods from the point of production (producer) to the final users (consumers).

1) Units Values; The unit value of a product affects the amount of funds available for distribution. Thus,the lower the unit value,the longer,usually are the channel of distribution. However,when products of low unit values are sold in large quantities or are combined with other goods that the total order is large ,shorter channels may be economically feasible.

2) Perishability; Products subjected to physical or fashion perishability must be speeded through their channels. The channels are usually short.

3) Technical Nature of a Product; An industrial product that is highly technical is often distributed directly to industrial users. The producer sales force must provide considerable resale and post sale service,wholesalers normally can not do this. Consumer product of a technical nature provide a real distribution challenge for manufacturers. Ordinarily, manufacturers can not sell the goods directly to the consumers. As much as possible, manufacturers try to sell directly to retailers, but even then,the servicing of the product often poses problems.

MIDDLEMEN CONSIDERATIONS

1) Services Provided by Middlemen; each producer should select middlemen that will provide the marketing services that the producer either is unable to provide or cannot economicaly perform.

2) Availability of Desired Middlemen; the middle men whom a producer desires may not be available.  They may be carrying competitive products and may not wish to add another line.

3) Attitude of Middlemen Towards Manufacturers Policies; sometimes, manufacturers choice of channel are limited because their marketing policies are not acceptable to certain types of middlemen. Some retailers and wholesalers, for example are interested in carrying a line only if they can get an exclusive franchise in a territory

   Because a channel of distribution should be determined by customer buying patterns, the nature of the market is the key factor influencing management's choice of channels. Other major considerations are the products, the middle man, and the company itself. Basically when selecting it's channel or distribution, a company should follow the criteria of the three C's channel control, market coverage, and a cost that is consistent with the desired level of customer service.

MARKET CONSIDERATION
   Perhaps the most obvious point to consider is whether the product is intended for the consumer or industrial market. If it is going to the industrial markets, of course retailers will not be included in the channel. In either case, other significant market variables should be considered.

1) Number of Potential Customers; with relatively few potential customers, a manufacturer may use its own sales force to sell directly to consumers or industrial users. For a large number of consumers, the manufacturer would more likely use middlemen. A related point is the number of different industries to which a firm sells. One company, marketing drilling equipment and supplies only to the oil company so directly to users. A paper product manufacturers, on the other hand made extensive use of industrial distributors to reach many different industries.

2) Geographical Concentration of the Market; Direct sale to the textile or the garment manufacturing industry is feasible because more of the buyers are concentrated in a few geographic areas. Even in the case of a national market, some segments have a higher density rate than others. Sellers may establish sales branches in densely populated markets, but they would use middlemen in the less concentrated market.

3) Order Size; A food products manufacturer who sell directly to large grocery chains because the large order size and total volume of business makes this channel economically considerable. The same manufacturer, however would use wholesalers to reach the small grocery stores whose orders are usually too small to justify direct sales.

1) Channel design should begin with the final consumer and work backward to the producer, because channels of distribution should be determined buy consumer buying habits.

2) The channels finally selected must be totally appropriate the basic objectives of the firm's marketing program. If management sets as its goal the widest possible distribution of its product line then obviously an exclusive franchise policy at the retail level is not an appropriate strategy.

3) The channels provided a firm with access to a predetermined share of the market. A manufacturer of golfing equipment seeking the broadest possible market would make a mistake by using a channel strategy that includes only large department stores and sporting goods stores at the retail level.

4) The channels must be flexible enough so that so that the use of one channel does not permanently close off another. A manufacturer of small appliances( irons toasters), for example, distributed only through appliance wholesalers, which in turn distributed to appliance retailers. The company had an offer from a drug chain to buy the products directly from the manufacturer. The appliance retailers threatened to discontinue the line if the manufacturer placed it in drug stores. The producer decided to turn down the drug chains offer. Subsequently, a competitive manufacturer accepted a similar offer and profited considerably.

5) There is a high degree of independence among all firms in the channel for any given product. There can be no weak link in the chain if it is to be successful full stop

6) Channels of distribution and middle men are always on trial occur constantly. Middlemen survive only when their existence is economically sound and socially desirable. Furthermore,new middlemen and channels arise tudu new jobs or to the existing jobs better.

      Four types of channels are widely used to reach industrial users. Again, a manufacturer may use a sales branch or a sales office to reach the next institution in the channel, or two levels of wholesalers may be used in some cases.

1) producer_industrial user; the direct channel accounts for a greater dollar volume of industrial product than any other distribution structure. Manufacturers are large installations,such as airplanes,generators and heating plants,usually sell directly to users.

2) Producer_industrial distributor_user; producers of operating supplies and small accessory equipment frequently use industrial distributors to reach their markets. Manufacturers of building materials and air conditioning equipments are two examples of firm that make heavy use of the industrial distributor.

3) Producer_industrial distributor_reseller_users; under here, distributors buy various products from manufacturers and bundle them with related products for the purpose of resale. The resellers which are usually smaller and locally based firms,work closely with the end users to meet the purchaser's needs. This channel option is common for computer products as well as other relate high ted items.

4) Producer_agent_users; firms without their own marketing departments finds this a desirable channel. Also a company that want to introduce a new product or enter a new market, may prefer to use agent rather than it's own sales forces.

5) Producer_agents_industrial distributors__users; this channel is similar to the preceding one. It is used for some reasons,it is not feasible to sell through agent directly to the industrial user. The unit sell may be too small for direct selling,or decentralized inventory may be needed to supply users rapidly, in such case, the storage service of any industrial distributor are required.

Five channels are widely used in the marketing of consumer products. In each,the manufacture also has the alternative of using of using sells branches or sells offices. Obviously,our suggestion that there are only five major channels in our oversimplification, but one that seems necessary if we are to discuss this unwisely subject in a few paragraphs.

1) Producer_consumer; the shortest simplest channel of distribution for consumer product is from the producer to the consumer,with no middleman involved. The producer may sell house to house or by mail.

2) Producer_retailer_consumer; many large retailers buy directly from manufacturers and agricultural producers.

3) Producer__wholesaler__retailer__consumer; if there is a "tradition" channel for consumer goods, small retailers and small manufacturers by the thousand find this channel the only  economically feasible choice.
4) producer_agent_retailer_consumer;instead of using wholesalers,many producers prefer to use a manufactured agent, a broker or small other agent. Like middlemen to reach to retail market , especially large scale retailers. For example,a manufacturer of a glass cleaner selected a food broker to reach the grocery market,including the large chain.

5) Producer_ agent_wholesaler_retailers_consumer.

The channel chosen from the distribution of a company's products will ultimately affect every other marketing decision the company takes and will go a long way in determining the success of the products. Channel decision will involve the company in relatively longer term commitment to other firms. To this effect,the company has to carefully gather and study all necessary information which will ensue it to take a good decision. While taking channel selection decision, the company must have in view tomorrow's likely marketing environment as well as today's.

MAJOR CHANNEL OF DISTRIBUTION
Below are the major types of distribution channels available to a producer for the distribution of his products.

1) Producer of Consumer Goods>Retailer>Ultimate Consumer.

Producer of consumer goods>Merchant wholesaler>Retailer>Ultimate consumer.

Producer of consumer product>Agent>Retailer>Ultimate consumers.

Producer of consumer goods>Agents>Merchant wholesalers>Retailers>Ultimate consumers.

2)Producer of business goods>Merchant wholesaler(Industrial distributor)>Business users.

Producer of business goods>Industrial distributor>Reseller>Business users.

Producer of business goods>Agent>Business users.

Producer of business goods>Agents>Merchant wholesalers>Business users.

The channel of distribution in its most meaningful and simple form, is the course taken by a product in the transfer of its title. This route includes both the manufacturer and the ultimate consumer, as well as anyone in between. Intermediaries in the channel include both merchants who take tittle and market to their own account, and various kinds of agents,or commission , seller who do not take tittle but who still aid marketing flows and exchange.


Channel management is concerned with the entire process of setting up and operating the contractual organisation that Is responsible for meeting the firms distribution objectives. For example, the comprehensive distribution strategy has to be planned , channel members has to be selected and persuaded to carry the product, negotiations have to be done on the areas of credit payment procedures, inventory levels to be maintained, the promotional support provided, and the supervision and control members planned, before the actual physical distribution of the goods. Physical distribution is therefore narrower than cannel management. However, physical distribution is very vital to the success of the firm's overall distribution strategy.

1) financial Resources; A financially string company needs middlemen less than one that is financially weak. A business with adequate finance can establish its own sales force, grant credits or warehouse it's own products. A financially weak firm would have to use middlemen who could provide their  services.

2) Ability of Management; Channel decisions are affected by the marketing experience and ability of the firm's management. Many companies lack marketing know how , prefer to turn the distribution job over to middlemen.

3) Desire for Channel Control; Some producers establish short channels simply because they want to control the distribution of their products, even though the cost of the more direct channel may be higher. By controlling the channel, the producer can achieve more aggressive promotion and better control both for the freshness of merchandise stock and the retail prices of their products.

4) Services Provided by Sellers; Often, producers channel decision are influenced by the marketing services they can provide in relation to those demanded by the middlemen. For example, often a retail chain will not stock a given product unless it is presaged through heavy manufacture advertising.

In other to ensure that plan complies with action and aims,the management of an organisation creates specific objectives for distribution channels.      The following are one of the channel objectives.


1) To achieve a certain level of sales outlet and increase earnings on common or usual stock.

2) To maximize brand exposure in the market and thus achieve nation wide distribution. A typical example is indomie noodle which the manufacturer seeks to make available to buyers in every nook and cranny of the country

3) To make retailers or wholesalers carry all types or sizes of product lines. Example,Nigerian Breweries would with wish it's wholesalers and retailers carry Maltina, Amstel Malt, Star beer, Gulder, (botteled and canned) and of all size.

4) To justify and as well maintain premium sales prices.

5) To ensure better and faster service than any competitor in the market area.

6) To discontinue fair trade practise, broaden distribution and capture a larger share of the market.

7) To make the product available to an exclusive group of consumers.

8) To guarantee continues supply of products from plants to the field depot and buyers.

Marketer behaviour involves performing certain tasks. To perform these tasks,the marketer has to relate with personnel in the department, personnel in other department, the management of the organisation, distributors or middlemen,consumers,professional bodies or associations, government and other publics. The marketer will not succeed in his job unless he knows how to interact and relate well with those who contribute to achieve his marketing objective.

The following are some of task usually performed by the marketer.

I) Getting management convinced to adopt and implement appropriate marketing policies and strategies.

II) Getting the cooperation of every member of the organisation to adopt and practice the marketing concept or the major tenets or principles of marketing.

III) Getting the cooperation of personnel in marketing department to work toward  customer satisfaction and cooperate profitability

IV) Getting the cooperation of personnel in other departments of the organization to work towards customers satisfaction and corporate profitability.

V) Getting the cooperation if outside public's such as retailers, wholesalers in other to satisfy consumer.

VI) Getting the support and cooperation of professional bodies and associations in working towards the development and progress of the marketing profession and practise.

VII) Getting the cooperation and influencing the government to adopt and implement good policies that will enhance marketing operations.