1. CHANNEL DISTRIBUTION
Syarikat Inani Craft & Design used all the channel distribution but the nominal one is direct
channel.
DIRECT CHANNEL
Happen when a producer deals directly with customers, without using intermediaries, it is using
distribution.
Example: catalog shopping, on-line shopping, and television shopping network.
Syarikat Inani Craft & Design used direct channel as their medium to promote their products to
customers. They sell their products directly to their customers.
ADVANTAGES
 Syarikat Inani Craft & Design receives
full differences between the
DISADVANTAGES
 The firm lose focus of production.
 Increase it cost when hire more
manufacturer’s cost and price charged
employees to perform all of the
to the customer.
distribution functions.
 They also has full control over the
price to be charged to the customer.
 They obtains firsthand feedback from
customers.
 A manufacturer the deals directly with
final customers may have to sell on
credit, which can be costly and exposes
the firm to the risk of bad debts.

2. There are two types of channel distribution:
1. One-level channel
2. Two-level channel
ONE-LEVEL CHANNEL
One marketing intermediaries is between the producer and the customer. Inani’s owner hired
agents to help them sell and promoting their products.
Intermediaries who become owners of the product and resell them are known as
merchants.
Examples: Wal-mart and Sears.
Other intermediaries, knows as agents, bring together buyers and sellers without
assuming ownership of the goods they help distribute.
PRODUCER
RETAILER
CUSTOMER
TWO-LEVEL CHANNEL
Two marketing intermediaries are between the producer and the customer.
PRODUCER
WHOLESALER
RETAILER
CUSTOMER