CHAPTER ONE
1.1    BACKGROUND OF THE STUDY
    Regardless of how good product may be, it is of little use to customers if it is not found at where he wants it and when he wants it. For simplicity, we will use the term “Place” to refers to all the thing that go into providing time, place and possession utilities that are needed to satisfy target customer just as we use product to mean total product offered.
    Place decision may be concerned with the location of marketing facilities and the solution, use of marketing specification including transportation, storage facilities,         wholesalers and retails.
    There are many definitions of channels of distribution some will be cited because each definition in it own way conveys a bit about the concepts.
    Channels are methods or system that people use to get information or communicate it to some specified set of people or individual.
    Distribution means distributing something to some particular set of people.
    Channel of distribution is an organized network of people or organization that performs all the marketing functions and activities required in ensuring the movement of good from manufacturers to consumers.
    Channels of distribution is also defined as the growth of intermediaries who move good from producers to consumers channels are perceived by some group as made up of intervening agents who facilitates sales.
    In our review, we shall define channels of distribution as the path taken by the title ownership in moving goods from producer to consumer.
    The Channels of distribution of consumer goods therefore, in its most meaningful and simple form is the course taken in the transfer of a commodity. This rate include both the manufacturer and the ultimate consumer as well as anyone in between this kind of channels. Goods and services cannot be marketed without the performance of market function.
    To understood this, one has to remember that marketing is the performance of activities to facilitate exchange processes. Whenever we are talking of facilitating exchange process, invariably we are thinking of channels of distribution. It is importance to keep two things in mind.
1.    Channels are coalition of marketing institutions (firms or agencies).
2.    Collectively or independently performing marketing function (Merchandising, promotion, physical distribution) in order to move goods from producer to target consumers.
This diagram suggested form of possible channel.