Salesmanship and Distribution Channels / Retail Selling
Distribution channels move goods and ownership from producer to consumer; retail selling is the final personal interface. The exam tests channel levels, functions, intensity choices and retail selling skills.
Core rules
- Channel functions: information, promotion, contact, matching, negotiation, physical distribution, financing and risk bearing.
- Levels: zero-level (direct), one-level (retailer), two-level (wholesaler–retailer) and three-level (agent–wholesaler–retailer).
- Intensity: intensive for convenience goods, selective for shopping goods and exclusive for luxury or specialty goods.
- Channel choice depends on product, market, company resources, intermediary availability and cost.
- Retail selling: greet, discover needs, demonstrate, handle objections, cross-sell or upsell responsibly, close and support after-sale service.
- Store atmosphere, visual merchandising, layout and staff knowledge influence unplanned purchases.
Worked example
A luxury watch brand uses exclusive distribution through selected authorised retailers and trained staff; a biscuit maker uses intensive distribution through many kirana and supermarket outlets. The luxury brand needs control, service and image; the biscuit maker needs availability. The same selling task differs: one is consultative and relationship-led, the other is availability-led with little personal selling.
Traps
Do not assume longer channels are always cheaper or always better; do not confuse channel level with the number of intermediaries at one level. In retail, do not treat upselling as pushing unwanted products - it must fit the customer's need.