Briefly explain the different types of Channels of Distribution/channel structure.

1. Zero channel level ( Producer – Consumer). This is also known as direct marketing through mail orders or own stores or door to door purchases . Services often use direct channels since the service provider, in most cases, must be there to provide the service. Simplest method, not necessarily the most effective. Technological developments are making the direct channel more common:
2. One level channel ( producer- Retailer - Consumers ) : Consist of a large retailers such as supermarkets where there is no discrepancy in quantity supplied and demanded. Popular for shopping products, clothing. Automobiles...cost of transportation and inventory is high.
3. Two –level channel ( producer- wholesaler- retailer- consumers) : Smaller retailers, widely distributed products, convenience products.
4. Three level channel ( producer – agent- wholesaler – retailer - consumers). This is a form of mass distribution such as processed food; and when there are a number of small producers etc. May be the most efficient distribution channel for consumer products and convenience products.

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marlinbito answered the question on February 26, 2019 at 06:31