Types of Channels.ppt.pptx

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...

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 https://www.youtube.com/watch?v=1HHJQ_tnd2E • Wholesalers – 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 – Key functions • Breaking bulk • Risk bearing • Financing • Buying • Transporting • Managing • Promoting • Providing market information Indirect Channels • Retailers – The “front line” – sell directly to consumer – Must have the right… • • • • • Merchandise Price Time Place Quantity Specialty Channels • Indirect channels of distribution that do not involve a retail store – Vending machines – The Internet – Catalogues – Telemarketing – Television sales