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Distribution refers to the business activity that delivers products to locations convenient for the customer. Distribution consists of tranaportation, storage, and related services such as financing, standartization and grading, and related risks.

The simlest form of distribution is direct sale. For example, in the collective farms meat may be sold directly to a consumer. For choosing the type of distribution you should know the type of product, its price , location, place, where the goods will be sold.

Most often the channel of distribution involves middlemen. A middlemen is a person or a company that takes possession of merchandise. He also arranges for transfeer of ownership or merchandise in the channel of distribution. The middleman gives the products place utility by delivering or transporting them to where they are needed. There are 2 types of middlemen: a merchant middleman, who take title to the merchandise, and agent middleman, who arrange for the transfer of title between manufacturer and wholesaler. A merchant middleman might be a person who owns a warehouse. An agent middleman might be a broker.