Distribution

WEEK 1

TOPIC: DISTRIBUTION

CLASS: JSS2

GENDER: MIXED

AVERAGE AGE: 12 YEARS 

DURATION: 2 PERIODS (40min. for each period)

REFERENCE: WABP junior secondary business studies book 2 and 

Classic business studies book 2

BEHAVIOURAL OBJECTIVES: By the end of the lesson, students should be able to:

1. Define distribution.
2. Mention the factors to be considered before choosing a particular channel of distribution.
3. Give the functions of a wholesaler.
4. State the functions of a retailer.
5. Mention the types of retail trade.

PREVIOUS KNOWLEDGE: the students have been taught market where the various channels of distributions meet.

Biblical Objective:
To ensure resources are shared fairly so that the needs of all people, especially the vulnerable, are met.

Biblical Truth:
God values just and compassionate distribution as an expression of love, unity, and stewardship within the community of believers.

Bible Verse:
“They sold property and possessions to give to anyone who had need.” — Acts 2:45 (NIV)

LESSON CONTENT

STEP 1: Distribution is the process by which services and products are moved from their manufacturing source to the consumers.

CHANELS OF DISTRIBUTION

Channel of distribution is a path through which goods move from the producer to the consumers.

There are many channels for distributing consumer goods. They are as follows:

1. Producer → Agent → Wholesaler → Retailer → Consumer
2. Producer → Wholesaler → Retailer → Consumer
3. Producer → Retailer → Consumer
4. Producer → Wholesaler → Consumer
5. Producer → Consumer

The agent, wholesaler and retailer are called middlemen because they are go-betweens for the producers and consumers in the chain of distribution of goods.

The well-known channels of distribution are:

Producer → Wholesaler → Retailer → Consumer

STEP 2: FACTORS TO BE CONSIDERED BEFORE CHOOSING A PARTICULAR CHANNEL OF DISTRIBUTION

1. Number of potential buyers
2. Competitors’ channel
3. Resources of the producer
4. Nature of goods
5. Size of order
6. Location of consumers

STEP 3: THE WHOLESALER

The wholesaler is a trader who buys in large quantities from the manufacturer and sells to the retailer.

The wholesaler is a middleman in the chain of distribution.

Wholesaling refers to the business of buying goods in large quantities from manufacturers to sell in small quantities to retailer

 FUNCTIONS OF THE WHOLESALER

      a.   SERVICES TO THE MANUFACTURER

1. Bulk breaking
2. A wholesaler does the marketing of goods
3. He creates room for producer to stock new products
4. He provides additional capital for the manufacturer by paying a large sum of money as deposit.
5. The wholesaler represents the interests of the producer and the retailer
6. Giving advice to the manufacturer

b. SERVICES TO THE RETAILER

1. Transportation of goods to retailer’s shop
2. Allows retailers to buy on credit and pay for the goods later.
3. He informs retailers about new development in market.
4. The wholesaler sells in small quantities to the retailer.

STEP 4: MEANING OF RETAIL

Retail involves the selling of goods to the final consumer. The final consumer is someone who buys goods for his or her own use.

THE RETAILER

A retailer may be defined as a trader who buys goods in small quantities from the wholesaler and sells in bits or units to the final consumers.

The retailer is the last link in the channel of production.

Production begins at the point of extraction of raw materials and ends when the goods are bought by the final consumer.

FUNCTIONS OF THE RETAILER

1. He sells in small quantities to consumers.
2. He provides after-sale services like installation, repair, servicing etc to the consumers.
3. He grants credit facilities to the consumer
4. Stock variety of goods.
5. He supplies information to the wholesaler and manufacturer
6. He sells at convenient locations and hours.
7. Ensures door-to-door services.
8. He gives advice to the consumers.

STEP 5:TYPES OF RETAILING

1. Small scale retailing
2. Large scale retailing

SMALL SCALE RETAILING

Small scale retailing is retail trading with a small scope of operations. Little capital can be used to set up small scale retailing trade such as:

1. Hawking
2. Mobile shops
3. Street or roadside trading
4. Market trader or stall trader
5. Small stores
6. Kiosks

LARGE SCALE RETAILING

Large scale retailing could exist as:

1. Chain or multiple stores
2. Departmental store
3. Supermarket
4. Mail order
5. Variety store
6. Retail cooperative society
7. Online shops retailers

EVALUATION: the teacher evaluates the lesson by asking the students the following questions;

1. Define distribution.
2. Mention the factors to be considered before choosing a particular channel of distribution.
3. Give the functions of a wholesaler.
4. State the functions of a retailer.
5. Mention the types of retail trade.

ASSIGNMENT

Explain the following:

1. Chain store
2. Departmental store
3. Supermarket