Research Papers Distribution Channel

Similar distribution channels are called horizontal .

Later there were vertical marketing systems with vertical distribution channels, where channels from the producer and one or several intermediaries act as a single system.

The owner of the channel can be either a producer or a wholesale (retail) intermediary.

In this case the manufacturer sells directly to customers.

An example of a direct marketing channel would be a factory outlet store.

By channel level is understood as the intermediary performing the work, which ensures the approach of the product and the ownership of the product to the final consumer.

Channel Length determines the number of intermediate levels between the manufacturer and the consumer.Traditional channels are distribution channels of various lengths, consisting of an independent producer and one or more independent intermediaries - channel members.Channel member is a separate company that seeks to maximize profits, which can lead to a reduction in the overall profitability of the system, since no member of the distribution channel has complete (sufficient) control over the activities of other members.The main function of a distribution channel is to provide a link between production and consumption.A distribution channel can be very simple, with just two layers (producer and consumer).The owner can give some members of the channel some privileges or has the opportunity to exert economic pressure on them to coerce them. At the first manufacturer is the owner of both wholesale and retail businesses.In the second case, the retailer has its suppliers.Here is a summary: Nature of the product Perishable/fragile? Complex products are often sold by specialist distributors or agents Customised?A direct distribution approach often works best for a product that the end consumer wants providing to a distinct specification Type of product – e.g. Marketing objectives – revenue or profit maximisation?A good example of this channel arrangement in the UK is the distribution of drugs. sell their goods directly to large retailers and e-tailers such as Comet, Tesco and Amazon which then sell onto the final consumers.Channel 3 is called a "direct-marketing" channel, since it has no intermediary levels.

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