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Channel Levels & Type of Distribution

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How many channel levels are appropriate for a company's targeted business segment and based upon this (the number), would the company use, exclusive, selective or intensive distribution? Why?

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The number of channel levels that are appropriate for a company's targeted business segment is dependent upon the product that is being provided. For instance, if one were to operate a car washing service, it would be ridiculous to add layers between the operator and the consumer. There is no need for greater distribution of the service since the service is based in a set location. On the other hand, should that same operator or organization offer private label car wash supplies, they might consider using additional distribution channels to get the products into the market place. The car wash owner could consider retailers, distributors, going direct to ...

Solution Summary

This solution discusses the correct number of channel levels that are appropriate for a company's targeted business segment and based upon this number, the best choice for type of distribution. It gives examples and an APA formatted reference.

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