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‘A channel of distribution consists of three types of flows.’ Explain the three flows. - Entrepreneurship

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Question

‘A channel of distribution consists of three types of flows.’ Explain the three flows.

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Solution

A channel of distribution consists of three types of flows:

  • Downward flow: Goods from producers to consumers.
  • Upward flow: Cash payments for goods from consumers to producers.
  • Both downward and upward direction: Flow of marketing information on new products, new uses of existing products, etc. from producers to consumers. Additionally, producers receive feedback from consumers and users about their needs, suggestions, and complaints.
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