ABSTRACT
A distribution system refers to that complex of agents, wholesalers and retailers through which manufacturers move products to their markets. Marketing channels are made up of independent firms who are in business to make a profit. These are marketing intermediaries or middlemen. Industrial goods manufacturers tend to use direct selling and deliver direct to the user/ customer. Fast moving consumer goods manufacturers tend to use a network of marketing intermediaries because of large numbers of potential customers and their wide dispersion, although there are exceptions like Avon Cosmetics who sell direct to homes through agents. An important consideration for marketing management when formulating channel policy and the number of marketing intermediaries used is the degree of market exposure sought by the company for its products. Products are said to be seen by customers as a bundle of attributes or satisfactions.
