Question

Many consumer-goods and industrial-goods companies both sell original product and provide service after the sale. Relative to a system where only product is sold (but no service is necessary), how would you suggest describing the list of channel flows performed by various members of the channel?

Answer 1

Here, firstly we will understand what is Distribution Channel. It means that the goods and services are passed on from the business or manufacturer to the end target user. It is defined as a process where the company develops various marketing techniques as well as sales strategies to reach the widest possible customer base. The channels are nothing but ways or outlets to market and sell products. The ultimate aim of any organization is to develop a better relationship between the customer and the product. In between there are various intermediaries like wholesaler, retailers, distributors and etc. there are two type of channel consists of Direct and Indirect channel. In Direct channel, the consumer can buy goods directly from the manufacturer and in Indirect channel there are intermediaries like wholesaler, distributer they are not allowed to buy goods directly from the manufacturer.   

            There are three types of channel, firstly, the first channel is the longest in that it includes all four, from producer to the end consumer. Secondly, the second channel is one where the producer sells directly to a retailer, who then sells the producer's product to the end consumer. This means the second channel contains only one intermediary and third, and final channel is a direct to consumer model where the producer sells its product directly to the end consumer.