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Monday, March 9, 2009

MARKETING CHANNELS

Marketing channels are sets of interdependent organizations involved in the process of making a product or services available for use or consumption.

· Marketing channels are used by producers due to lack of finances or feasibility.

· Most of producers work with marketing intermediaries to bring their products to market. These intermediaries make a marketing channel.

Various marketing channel levels are:

1.ZERO-LEVEL CHANNEL: It is also called direct marketing channel and consists of manufacturers selling directly to the final customer.

The major zero-level channels are door-to-door sales, home parties mail doctor’s Rx, mail order, telemarketing, TV selling and manufacturer’s owned stores.

2.ONE LEVEL CHANNEL: It consists of producer, one intermediary (e.g. retailer) between producer and customer.

3.TWO-LEVEL CHANNEL: It contains two intermediaries (e.g. wholesaler plus retailer between producer and customer.

4.THREE-LEVEL CHANNEL: It contains three intermediaries (e.g. wholesaler, jobber and retailer).

5.MULTI-LEVEL CHANNEL: For example food industry.

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