Frequently there may be a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user. Our company uses on of the alternate channel which is selling direct, such as with an outbound salesforce or via mail order, Internet and telephone sales
Distribution channels can thus have a number of levels. Kotler defined the simplest level, that a of direct contact with no intermediaries involved, as the 'zero-level' channel. The next level, the 'one-level' channel, features just one intermediary; in consumer goods a retailer, for industrial goods a distributor. In small markets (such as our company), it is practical to reach the whole market using just one- and zero-level channels.
Distribution channels can thus have a number of levels. Kotler defined the simplest level, that a of direct contact with no intermediaries involved, as the 'zero-level' channel. The next level, the 'one-level' channel, features just one intermediary; in consumer goods a retailer, for industrial goods a distributor. In small markets (such as our company), it is practical to reach the whole market using just one- and zero-level channels.
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