Wednesday, January 10, 2018

Number of channel levels

Channel level:
Channel level is a layer of marketing intermediaries who performs some work in bringing the product & it's ownership closer to the final buyer. Producer & the final consumer also a part of every channel because both are perform all work.

The number of marketing intermediary levels shows it's length of a channel.  Here two types of marketing channel are found .



1. Direct marketing channel:  It has no intermediary levels. Company's sell directly to consumers. In the figure A, look at channel 1 , it's it's example of direct marketing channel. For example:- a cosmetics producer sell their products door to door, online selling , hon or offices sales parties  are direct marketing channel.  Rest two  Channels are the example of indirect marketing channel.

2. Indirect marketing channel :- It containing one or more intermediary levels. See the figure; channel 2&3 are the example of indirect marketing channel because here consists one or more intermediaries  who bring the product in the market or final consumers.

From the producer's point of view , having greater levels of intermediaries means less control & more complexity.  Moreover , all the institutions in the channel are connected by many flows  including physical flow, ownership flow, payment flow, information flow & promotion  flow . This flow can make very complex channels with one or a few levels.


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