Channels of distribution refer to the pathways through which goods and services travel from the producer to the final consumer.
In the context of GCSE Business Studies, understanding these channels is crucial as they involve intermediaries such as wholesalers, retailers, and agents that help in moving products to the market. These channels can be direct, with products going straight from the manufacturer to the consumer, or indirect, involving several steps and intermediaries.
Effective distribution channels are essential for ensuring that goods reach consumers efficiently, influencing how businesses manage supply chains, pricing strategies and customer satisfaction.
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