The role of effect in distribution channel in any organization can not be over emphasized. This is because it assists positively in creating customers satisfaction, since the customer remain the king in any economy. Distribution channel a locust path and route through which product passes or move from the point of production to the point of consumption is essential hence, its significance never be divorce from marketing product The process cover five chapters: Chapter One: Background of study, statement of problem, objectives of the study, significance of the study, scope and limitation of the study, definition of terms, management, distribution policy and channels, marketing intermediaries agents direct sales. Chapter Two: Has to do with literature review, being the review of past authors work on the subject matter, direct and indirect method of distribution, wholesaling, limited service of wholesaler, retailing and their function, objective of distribution, the channel design decision, accounting for the cost of distribution principle of managing the channels and technique for managing the channel. Chapter Three: Consist of research methodology. This consist of the research method used instrument used for data collection, research population and sample size, the sampling procedure employed and the statistical techniques used in analysis of data and the information of data. Chapter four: Also cover, the presentation and analysis of data and the proof of hypothesis Chapter Five: The finding, conclusion and recommendation, summary
1.0 BACKGROUND OF THE STUDY
It is observe that place it one of the marketing activities include channel of distribution transaction were housing, STORAGE, INVENTORY handling etc. when product have been produced, marketers have to create to place utility.
It does not matter how good products are the movements it cannot get to the customer at the right place, the objectives of marketing are defeated.
Distribution channel involves inter – related activities that enhances the movement of goods and service from the producer and to the point of consumption through organization that performs different types of marketing activities. It is critically essential that marketer understand channel of distribution facilities that will enables to distribution facilities that will enable them to research their target market effectively.
Distribution channel concept is essentially the development and operation of efficient flow system for product it relates to other activities of the firm to the extent that it is difficult to isolate them exception in conceptual terms.
Beside its interaction with promotion and other marketing functions, the distribution management concept also interact with production, this makes distribution a key to success market that is distribution is central to the success or failure of company’s efforts.
1.1 STATEMENT OF THE RESEARCH PROBLEM
The aim of producer, is to produce goods and service to wards consumers wants and satisfaction, and one of the means to let consumers get satisfied is to enable consumer get the goods at the rights place. This can only be possible through channels of distribution which are often linked to pipe inked to pipe line through which a product flows on its way toe the consumer. It is therefore, become interactive that markets understand channel or distribution and that they are able to distribute facilities that will enables them to reach their market target effectively. The route taken by goods and services include the manufacture intermediacies and the ultimate consumers. Intermediaries in the channel process include wholesaler, retailer and various kinds of agent such brokers.
The channel distribution is an organization dispute its important have been observed to create the problem of high price of goods and service which in turn usually bring about low sale of companies product, reduction in consumers satisfaction etc. it is as a result of this problems that the research is under taken to ensure its minimization and maximize consumers satisfaction. As a result of the above problem mentioned, the choice of channel of distribution to be used should be headed with care, infant the following factor company objective market consideration product characteristics, middlemen characteristics consumer and characteristics environment characteristic are fundamental toward choosing distribution channels and firms must take cognizance of them.
Therefore, channel of distribution should be heated as total system of action. Producer and middlemen should understand that each of them is one component of total systematic organization that is designed to maximize market effectiveness in selling the company product and meeting customers satisfaction.