Agricultural Products: One of the chief characteristic features of the distribution of agricultural products is the presence of a large number of brokers and agents. These brokers who stand at par with the retailers in the consumer goods channel perform a number of functions of their own. They sometime act as assemblers and thereafter, instead of selling the products to ultimate consumers sell to wholesalers. The direct sale is only very meagre.

The presence and involvement of the Cooperative Societies in the channel is “peculiar to agricultural products. Another notable feature is that these channels are not at all permanent. They may vary from; product to product and even from one season to another. The channel for paddy has no resemblance to the channel for cotton or jute.

Industrial Products: The industrial goods have more or less fixed pattern. Naturally the channels available are also less complicated. Major channels recognized in industrial market are:

Producer-industrial user. This is the most commonly used channels in the distribution of industrial goods. Manufacturers of machinery prefer to adopt this channel to avoid unnecessary expenditure on transport, insurance, etc.

Producer industrial distributer users. This channel is used in die distribution of accessory equipment which are required by users. The user cannot always approach the manufacturers for their requirements As such industrial distributors arranged on an area wise basis become available.

Producer-agent user. Small sized manufacturers who do not have their own marketing departments find it convenient to have agent at different selling points. This arrangement is considered good for introducing new products.

Producer-agent industrial distributor-user. It is combination of, the above two channels adopted to soft varying conditions on the basis of geographical factors.

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