Types of Channels - BMI3C

Types of Channels BMI3C  Success Criteria I will be successful when I can ………… Describe the 3 different types of distribution channels Make a creative poster showing which channels real companies/products use to get to the consumer  Direct Channels Customer buys di...

Types of Channels BMI3C  Success Criteria I will be successful when I can ………… Describe the 3 different types of distribution channels Make a creative poster showing which channels real companies/products use to get to the consumer  Direct Channels Customer buys directly from the producer No intermediaries – An integrated distribution policy is direct – Farmers’ Market – Bakery – Restaurant  Indirect Channels Goes from producer to customer through one or more intermediaries – Importers May or may not have exclusive rights to distribute a product in their country Sometimes they seek out new products to import, sometimes they are contacted by a manufacturer looking to expand Agreements are contracted for a specified period of time  Indirect Channels Wholesalers (COSTCO) – Buy from manufacturer and sell to retail stores or other businesses – Many manufacturers have minimum orders that they will ship, which are too big for smaller retailers (have to buy in bulk) – Key functions Breaking bulk Transporting Risk bearing Managing Financing Promoting Buying Providing market information  Indirect Channels Retailers – The “front line” – sell directly to consumer – Must have the right… Merchandise (Product) Price Time Place Quantity  Specialty Channels Indirect channels of distribution that do not involve a retail store (not physical) – Vending machines – The Internet – Catalogues – Telemarketing – Television sales