Question

What is channel of distribution? Explain various types of channel of distribution.

Answer 1

In marketing, goods can be distributed using two main types of channels: direct distribution channels and indirect distribution channels......... A distribution system is said to be direct direct when theproduct or service leaves the producer andgoes directly to thecustomer with no middlemen involved.

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Answer 2

Channel of distribution can be explained as follows:

Explanation: It refers to the path which is being used by the company to transfer the goods to the ultimate consumers or the customers. There are various channels which can be opted by the company depending on various factors such as nature of the product, it's quantity etc.

Types of Channel of Distribution:

1. Direct channel: It is also known as zero level distribution in which products are directly sold from the manufacturers to the consumers eliminating the intermediaries in between. This is the most oldest type of channel which is still being followed. Example: Direct online selling through websites.

2. Indirect channel: It is just opposite to the direct channel in which manufacturers involved the middleman to sell the products to the consumers. These are further divided into three kinds:

• One level: Manufacturer- Retailer- Customer.

• Two level: Manufacturer- Wholesaler- Retailer- Customer.

• Three level: Manufacturer- Agent- Wholesaler- Retailer-Customer.

Learn more about channel of distribution:

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