Marketing Channels

Sharing of things does not means that ownership of that particular product is transfer but when  set of practices are used to transfer the possession of goods and to move goods  from the  production site to the  consumption site is know as Marketing Channels 

Marketing channels plays important role in linking produces with buyers,performs sales advertising and promotion activities,helps in determining the price of a commodity etc

Marketing channels are of many types and which type of marketing channel should be employed is depended upon the type of business model.

TYPES OF MARKETING CHANNELS

\

1. Manufacturer to Consumer

 In this type channel there is no intercessor. Manufacturer is engaged in making goods and directly distributes those goods to consumers as simple as that,one of the example is a Farmer selling some products directly to customers or a Bakery shop selling cakes directly to customers.

2. Manufacturer to Retailer to Consumer

 Retailer is the mediator between manufacturer and consumer.  Purchases are done by the retailer from the manufacturer and then the retailer sells the goods to the consumer. This channel is used by manufacturers who are engaged in producing shopping goods. For example shoes, furniture and clothes etc. 

3. Manufacturer to Wholesaler to Retailer to Consumer 

In this channel, there are two option for consumers one is wholesaler and other is retailer.It follows like wholesaler will  buy goods @ large scale and sells to retailer and then retailer sells to consumer.

 4. Manufacturer to Wholesaler to Consumer 

Consumer’s can buy goods  directly from the wholesaler.Wholesaler breaks down bulk packages for selling purpose to the consumer. The wholesaler reduces purchase price in order to make the product cheaper for the consumer . For example, shopping at some of the warehouse clubs, the customer  have to buy a membership in  to buy goods directly from the wholesaler.

5. Manufacturer to agent to wholesaler to retailer to consumer 
Distribution of good  that involves more than one mediators ,involves agents called as middleman and that middleman assist with the sale of the goods and for performing the sales activities he receives a commission from the producer. Agents are very useful when products need to move quickly into the market soon after the order is placed.