CHANNEL SYSTEM

CHANNEL SYSTEM

We know marketing cahnnel or ditribution channel is the way to distribute the product ,marketing channels distribution channel includes several individual and unstitution such as producer,wholesellers, retailers,agents ,industrial distributers and industrial users,distribution channel systesm also includes two types of flows,they are:-

-FORWARD FLOWS
-BACKWARD FLOWS


Forward flows moves from the producer to the market ex. consumer or users ,there are three forward flows they are.:-

communication,product and ownership

Backward flows move from the market to producers ,backward flows are order for product ,money,market information.

producer:-
*communication
*product
*ownership
*order for product
*money
* market information
this all =:- MARKET

CHANNEL STRUCTURE:-
Channel structure or structure of distribution channel refers to no. types of channel members involve in the channel systems structure.
channel structure for consumer product:- there are mainly four option in channel structure for distribution of consumer product.

*PRODUCER:-Consumer channel:- This is the direct channel for the distribution of consumer product.In this channel producers sales the products directly to the ultimates consumers without any middle men , so this channel is known as zero level channel.the producers can sales the product directly to the consumer through mail order,internate and multiple shoppes ,some producers implies some sales.representatives to provide,door to door services to sales ,the product ,this channel is mostly for perishable products, it is also used for the high price technical complicated product that need technical advice such as solar heater air conditioner etc. ,service product is also marketed through this channel.


*PRODUCER - RETAILER -CONSUMERS CHANNELS:- In this channel producer sales the product directly to the retailers by passing the whole sellers,and the retailers sales them to the ultimate consumer's ,this channel is also known as one level channel cause it involves only one middle mens that is retailers ,the use of this channel is possible due to the development of large retailers such as departmental store,supermarket etc. cause they order for the product in large quantity ,this channel is mostly use for marketing the home appliances ,clothings and auto mobile.

*PRODUCERS -WHOLE SELLERS-RETAILERS-CONSUMERS CHANNEL:- This channel is most common and traditional channel .in this channel producers sales the product to the whole sellers and the whole sellers sales the product to the retailers and retailers sales the product to the consumers ,this channel is mostly used for marketing the comienece products.this two level channel.

PRODUCER -AGENT -WHOLE SELLERS -RETAILERS -CONSUMERS CHANNEL:- This is the longest and three level channel ,in this channel producers sales the product to the whole sellers through agents ,the whole seller distribute them to the retailers ,the retailers sales them to the ultimate consumers ,in this channel agents do not take the ownership of the products that they handle they work for the producers or commission basis .
this channel is mostly used in international marketing where the producer are not able to deal with the local whole sellers due to distance and languages problems.

by santosh

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