Lesson Notes By Weeks and Term - Senior Secondary 1

Channels of distribution I

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Term: 3rd Term

Week: 8

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Economics

Topic:-       Channels of distribution I

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. Define distribution and channels of distribution
  2. Highlight those involved in the process of distribution
  3. Define wholesalers and state their functions
  4. Define retailers and state their functions

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on Money

Students pay attention

STEP 2

EXPLANATION

She defines distribution and channels of distribution. She highlights those involved in the process of distribution

Students pay attention and participates

STEP 3

DEMONSTRATION

She defines wholesalers and states their functions. She also defines retailers and states their functions

Students pay attention and participate

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE                        

CHANNELS OF DISTRIBUTION

Distribution is defined as the transfer of goods and services from the producers to the consumers. Among many activities in distribution system are purchasing, assembling, packaging, warehousing, inventory management, transportation and marketing.

 

CHANNEL OF DISTRIBUTION

This is also known as chain of distribution. It is the various stages or channels through which finished goods are moved from the manufacturers or producers to the final consumers. It consists of the wholesaler and retailer. They are called the middlemen.

 

Manufacturer/Producer

Wholesaler

Retailer

Consumer

 

PROCESS OF DISTRIBUTION

The process of distribution of goods involves all human and physical means which aid the smooth transfer of such goods from the manufacturer to the final consumers. It involves the middlemen, transportation, advertisement and warehousing.

 

MIDDLEMEN

The middlemen are the wholesalers and retailers who specializes in performing activities relating to the purchase and sale of goods in the process of their flow from manufacturer to final consumers or buyers

 

THE WHOLESALER

A wholesaler is a trader who buys in bulk directly from producers and sells in relatively small quantity to retailers. Wholesalers are the middlemen between the producer and the retailer.

N.B: Producers/manufacturers are the ones who create products by combining the factors of production to satisfy human wants.

 

FUNCTIONS OF WHOLESALERS

  1. Bulk breaking: the wholesaler purchases goods in bulk or large quantity from the manufacturer and sells in small quantities to the retailers.
  2. Financing production: they finance production by ensuring prompt payment to the manufacturer and this will facilitate production processes.
  3. Information dissemination: they provide the necessary information to the manufacturer regarding the retailers’ and consumers’ views about the products. Maybe change in taste, fashion..etc.
  4. Warehousing: the wholesaler provides warehousing facilities to get rid of stockpiling at the production point. Goods are stored here until they are bought, hence it encourages the manufacturers to keep on producing.
  5. Advertising: the wholesaler helps in carrying out product advertising and sales promotions and by so doing creates awareness for the products.

 

THE RETAILER

A retailer maybe defined as a trader who buys goods in small quantities from the wholesaler and sells in bits or units to the final consumers. There are two major types of retailer; the large scale retailers like variety chain stores, multiple stores, department stores, supermarkets and cooperative stores. The small retailers include; street hawkers, street vendors, kiosk traders, small shop owners , operators of mobile shops

 

FUNCTIONS OF A RETAILER

  1. He sells in small quantities to consumers: the retailer purchases in small quantities from the wholesaler and breaks the goods down into units for the customers.
  2. He provides after-sales services: he provides after-sales services like installation, repairs and servicing to the consumer.
  3. He grants credit facilities to the consumers: the retailer can grant credit facilities to the consumers so as to enable them enjoy goods without payment immediately.
  4. He sells at convenient locations and hours: the retailers sell goods to the consumers at any time of the day and at convenient places.
  5. He gives advice to the consumers: he can advise the consumer on the quantity, uses, specifications and performance of products.

 

 

EVALUATION:    1. Define distribution and channels of distribution

  1. Highlight the people involved in the processes of distribution
  2. Define wholesalers and state three of their functions
  3. Define retailers and state three of their functions

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively