THE CONCEPT DISTRIBUTIVE TRADE

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Last Updated on June 7, 2018 by Simnify

The term distributive trade or chain of distribution simply refers to the various stages which finished products pass before reaching the final consumers.


Process of Distribution   
The process of distribution implies the series of activities that take place in the task of bridging the gap between the manufacturers and the consumers. These activities includes
1.Merchandising,
2.Packaging
3.Storage
4.Transportation
5.Advertising

Channels of Distribution
The channel of distribution is the route taken as products move from the manufacturer to the final consumers. The ultimate goal of the distributive activities is to enable products produced get to the consumers without any damage to the quality.
Manufacturer  Wholesaler Retailer  Consumer

THE WHOLESALER
The wholesaler is a middleman who purchases in bulk from the manufacturer and sells in small quantities to the retailer. The wholesaler is essential in the channel of distribution.
Role of the Wholesaler: The wholesaler plays a major role to the manufacturer, the retailer and the consumer.
(1)    Role of the Wholesaler to the Manufacturer
a.    Bulk Breaking
b.    Risk Bearing
c.    Provision of Warehouse Facilities
d.    Price Stability
e.    Branding and Packaging
f.    Transportation
g.    Keeping Manufacturer informed
h.    Financing Production
i.    Advertising and Marketing
(2)    Role of the Wholesaler to the Retailer
a.    Provision of variety of goods
b.    Provision of credit Facility
c.    Price Stability
d.    Grading and packaging
e.    Transportation
f.    Advising the retailer
g.    Advertising the Product

(3.) Role of the Wholesaler to the consumer
    Variety of Goods
    Price Stability
THE RETAILER
The retailer is a vital link in the distributive process. He buys goods from wholesaler and in some cases, directly from the manufacturer and sells to the consumers. As a merchant, he buys in small quantities and sells in smaller units. He puts the goods in the hands of the consumer and thus completes the production process. He works towards marketing the available goods in the right place at the right time.
Role of the Retailer
a.    Selling in Small Quantities
b.    Availability of Variety of goods
c.    Selling at Convenient Time and place
d.    Selling in Credit
e.    Informing the Wholesaler and Producers
f.    Provision of  after sales service
g.    Advising the Consumer
h.    Weighing, Measuring and packaging

THE MIDDLEMENThe middlemen are wholesalers and retailers who are in-between the manufacturer and the consumers in the production and distribution of goods. These middlemen do encounter lots of problems in the course of the distribution of commodities in West Africa

TYPES OF WAREHOUSE
A.    Ordinary Warehouse
B.    Bonded Warehouse
C.    State Warehouse


PROBLEMS OF DISTRIBUTION AND MARKETING OF COMMODITIES IN WEST AFRICA
(1)    Inadequate infrastructural facilities
(2)    Inadequate storage
(3)    Hoarding and speculation.
(4)    Packaging problem.
(5)    Inadequate transport system.
(6)    Long chain of distribution.
(7)    Insecurity on the roads.
(8)    Inadequate information.
(9)    Administrative bottlenecks in the collection and handling of goods

WAYS OF IMPROVING THE SYSTEM OF DISTRIBUTION OF CONSUMER GOODS IN WEST AFRICA
(1)    Construction of good road.
(2)    Improving the communication system
(3)    Provision of adequate storage facilities
(4)    Establishment of more market
(5)    Reduction in number of middlemen
(6)    Offering credit facilities
(7)    Formation of consumer co-operative societies

REFERENCE TEXTS
(1)    Fundamentals of Economics for senior secondary           schools, Book1 by R.A.I. Anyanwuocha; Africana
(2)    Comprehensive Economics for senior secondary schools, Book1, 2 & 3 by  J. U. Anyaele; A. Johnson Publishers Limited.

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