GENERAL KNOWLEDGE

Detailed explanation-1: -It facilitates direct relationship between the manufacturer and the customer. Examples – e-business (selling through internet); Direct Mail Order Houses; Chain Stores (Colourplus, Nike, Bata etc.); Direct selling (Amway; Oriflame etc.)

Detailed explanation-2: -A distribution channel is a network of intermediaries that facilitates product delivery from the manufacturer to the end consumer and transfers payments from the buyer to the producer.

Detailed explanation-3: -The most simple and the shortest mode of distribution is direct distribution, where in the goods are made directly available by the manufacturers to customers, without involving any intermediary. This is also called zero level channels.

Detailed explanation-4: -Producer → Customer (Zero-level Channel) The producer sells the goods or provides the service directly to the consumer with no involvement with a middle man such as an intermediary, a wholesaler, a retailer, an agent, or a reseller.

Detailed explanation-5: -Level Zero: A level zero distribution channel is the simplest. It involves a direct sale from manufacturers to consumers with no intermediary. Level One: A level one channel has one intermediary as the middleman between the producer and consumer. An example is a retailer between manufacturer and consumer.