Question

write a paragraph in your own word about 15.1 The variety of distribution channels and how they affect cost and efficiency in marketing

Answer 1

In marketing there are four type of distribution channel.

They are :

a. Direct distribution channel : In this type of distribution channel the product or service is directly gets delivered from the manufacturer to the customer and all the marketing functions are performed by the manufacturer himself. This is low cost marketing channel which can be used for less amout of consumer goods.

2.Indirect distribution channel : In this type of distribution channel the manufacturer first sells the goods to the retailer than the retailer sells them to the customers. This is the most effective method of distribution as the retailers have sales people with good selling skills.

3.Selective distribution channel : In this type of distribution channel the manufacturer delivers the goods to a few wholesalers which in turn sells them to the reatilers who actually sell the goods to the consumers.This type of distribution channel is only effective in specific product s such as food products.

4. Intensive distribution channel : In this type of distribution channel the producer select s many wholesaler and retailer to sell their products. This thpe of distribution channel is chosen if the producer if the goods wants to capture maximum share of the market.