Channel distribution


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Channel distribution

  1. 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. 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