Question

While referring to the Consumer Marketing Channels diagram, use a consumer product and examples of retailers and wholesalers, to give an example of each of the four potential distribution channels shown in the diagram. Discuss the role played by each of the channel members. please write the reference from where you pick the informaion

Answer 1

There are four potential distribution channels :

• Direct Distribution Channel : Eureka Forbes Limited (Producer and Consumer)

This is a direct distribution channel used by Eureka Forbes. Here the company representative sells the water purifier directly to the customer.

• One Level Distribution Channel : Hyundai Automobiles Pvt Ltd.(Producer , Distributor,Consumer)

Hyundai manufactures cars, which is then supplied to the distributor's showroom, from where it is sold to the customer. Distributor promtes the product and provides sales staff and space to sell the cars.

• Two Level Distribution Channel : Cipla Pharmaceuticals (Producer, Wholesaler, Retailer, Consumer)

In pharmaceutical company, the producer manufactures medicines, wholesaler purchases in bulk quantity, stocks it in the warehouse and then the retailer purchases in small quantity for each locality from the wholesaler and sells it to end consumers.

• Three Level DIstribution Channel : Dairy Day Ice Creams (Producer, Distributor, Wholesaler, Retailer, Consumer)

In an ice cream plant, producer produces the ice cream, passes it to the distributor, who stocks it at a central place , who then passes it to the regional wholesaler in bulk quantity. Then the retailer for each locality purchases in small quantity and sells it to the end consumer.

References

Marketing Management , Philip Kotler V Edition