Research Papers Distribution Channel

convenience, shopping, speciality Desired image for the product – if intermediaries are to be used, then it is essential that those chosen are suitable and relevant for the product. Does it involve selling overseas (see further below)The extent and nature of the competition – which distribution channels and intermediaries do competitors use? Does it have established distribution network or does it need to extend its distribution option How much control does it want over distribution?The longer the channel, the less control is available Legal issues Are there limitations on sale?In terms of the length, several types of such channels are singled out, the producer company independently sells the product to end-users (presentation and sale of goods at home by commercial agents, peddling, sending by mail, selling by phone, via the Internet, using television, selling in the manufacturer's stores ). channel with the participation of a single intermediary will be beneficial: • If the market is poorly understood, if the manufacturer does not have the financial means to study it and organize sales activities • Insignificant volumes of pre-sales and after-sales service; • a small number of segments of the consumer market; • a fairly wide range of products; • a small multiplicity of one-time purchases dictated by the characteristics of the product. Two-level, ie channel with the participation of two intermediaries. channel with the participation of three intermediaries.

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not dominated by a small number of large, powerful retailers who have an incentive to cut out the wholesaler. The consumer electrical goods market in the UK is typical of this arrangement whereby producers such as Sony, Panasonic, Canon etc.

In this case the manufacturer sells directly to customers.

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

The figure below shows some examples of channel levels for consumer marketing channels: In the figure above, the first two channels are "indirect-marketing channels".

Channel 1 contains two intermediary levels - a wholesaler and a retailer.

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