Types of Channel Intermediaries.
There are many types of intermediaries such as wholesalers, agents, retailers, the Internet, overseas distributors, direct marketing (from manufacturer to user without an intermediary), and many others.
A description of the size and number of levels in a channel.
1. Zero level
It involve direct marketing consists of a manufacturer selling directly to the final customer. Perishable, non-standardized products, High unit value products will require more direct marketing because of dangers associated with delays.
2. One level channel
It involves one selling intermediary such as retailer.
3. Two level or more channels
It involves more than one selling intermediary such as wholesaler, retailer. Generally consumer goods industry prefers this type of channel.
Appropriate intensity levels as they relate to traditional consumer product classifications:
Here intensive distribution strategy can be used that is the intensity is high as these goods are purchased frequently for example soaps, newspapers.
Here selective distribution strategy can be used that is the intensity is moderate as the consumers take time to make the decision. For e.g. Furniture, cars.
? Specialty goods.
Here exclusive distribution strategy can be used that is the intensity is low as they are unique in characteristics. For e.g. fancy goods
Using Alternative Channel Intermediaries - Internet
The Internet has a geographically disperse market. The main benefit of the Internet is that niche products reach a wider audience e.g. Scottish Salmon direct from an Inverness fishery. There are low barriers low barriers ...
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