Several parties are involved either directly or indirectly in the distribution channel:
  • Processors and Manufacturers
  • Producers
  • Agents and Brokers
  • Wholesalers
  • Retailers
 


Each party has a specific role, depending on the product, and commercial success is determined by how well each fulfills its role.

Important note: In marketing, the roles of customer and consumer are different. A customer purchases the product or service. A consumer uses the product or service. For example, a producer markets a brand of clothing for teenage girls. Parents may purchase the clothes, but the girls are the consumers. If a producer doesn't market to the consumer, the consumer won't use the product (i.e., the girls won't wear the clothes).