Channel levels, Marketing Management

Assignment Help:

Channel levels:

The producer and the final customer are part of every channel. We will use the number of intermediary levels to designate the length of a channel.

1. Channel of distribution for consumer goods: as we know that a channel of distribution is the combination of middlemen that a company uses to move is products to the ultimate consumer. For the consumer products four channels are widely used as shown in figure below.

2. Zero level channel: a zero level channel (also called a direct marketing channel) consists of a manufacture selling directly to the final customer. The major examples are door to door sales home parties, mail order, tele marketing, TV selling, internet selling, and manufacture owned, stores. Eureka Forbes representativies sell vacuum cleaners door to door.

3. One level channel: a one level channel contains one selling intermediary such as a retailer.

4. two level channel: a two level channel contains three intermediaries. In the meat packing industry whole salers sell to jobbers who sell to small retailers. Longer marketing channels can be found in japan food distribution may involve as many as six levels. From the producers point of view obtaining information about end users and exercising control becomes more difficult as the number of channel levels increases.

5. Channel of distribution for services: the intangible nature of services creates special distribution requirements. There are only two common channels for services as shown in figure follow.

6. Channel of distribution for industrial products: An industrial goods manufacture can use its sales force to sell directly to industrial customers. It can sell to industrial distributors who sell to te industrial customers or it can sell through manufacture representatives or its own sales branches directly to industrial customers through industrial distributors. Zero one and two level marketing channels are quite common in industrial marketing channels.


Related Discussions:- Channel levels

Define about the personal selling tool, Define about the Personal Selling t...

Define about the Personal Selling tool This tool differs from previous two in that although it still lacks relative credibility and control, degree of control is potentially lo

Steps involved in designing a channel system, Steps involved in designing a...

Steps involved in designing a channel system: Formulating the channel objective: Formulating the channel objectives is the first step in designing a channel system. The objecti

Concept of the integrated communication mix, Question: (a) Describe and...

Question: (a) Describe and illustrate with clear examples the concept of the ‘Integrated Communication Mix' (b) Using the AIDA model, explain how both Public Relations and

Define the strategy development phase in brief, Define the Strategy Develop...

Define the Strategy Development Phase in brief. Phase Strategy Development Phase: If you already know your competitors and target market, you are capable to start creatin

Explain the various elements of the marketing process, A Convertible Ultrab...

A Convertible Ultrabook is a new type of notebook which functions both as a laptop and tablet mode when required. Ultrabooks are designed to feature reduced bulk without compromisi

Describe characteristics of relationship marketing, Question 1: (i). D...

Question 1: (i). Describe briefly characteristics of relationship marketing. (ii). Produce a report on relationship marketing for a forthcoming sales conference. Outline

Acquisition valuation - punch products, Punch Products (PP) is a regional p...

Punch Products (PP) is a regional producer of soft drinks and sells mainly in the states of Kansas, Oklahoma, and Texas. Three years ago, in 2009, it made the decision to diversify

Factors influencing changes in product mix, Factors influencing changes in ...

Factors influencing changes in product mix 1.       Change in market demand: the change in the demand of a product (due to change in habits, fashion, purchasing power, in

Marketing, in context of marketing, explain three approaches that were use ...

in context of marketing, explain three approaches that were use in early days

Sprite Brand, What are the different strategies in sprite brand

What are the different strategies in sprite brand

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd