MANAGEMENT

BUISENESS MANAGEMENT

MARKETING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Manufacturer uses wholesalers and retailers to distribute goods to the customers. Which level channel of distribution is the manufacturer using-
A
Zero
B
One
C
Two
D
Multi
Explanation: 

Detailed explanation-1: -The product’s journey from the manufacturer involves distributor, retailer, and customer. The costs relative to sales and marketing are divided between the parties. The advantage of this model is that it’s possible to reach a larger number of consumers.

Detailed explanation-2: -Two-level channel Wholesalers generally make bulk purchases, buy from the producer, and divide the goods into smaller packages to sell to retailers. The retailers then sell the goods to the end buyers. The two-level channel is suitable for more affordable and long-lasting goods with a larger target market.

Detailed explanation-3: -In this case, a level two channel involves two intermediaries between producer and consumer. An example here would be a wholesaler selling to a retailer who then sells to the consumer.

Detailed explanation-4: -A direct channel of distribution Is one where a company sells directly to the end consumer. For instance, an athletic apparel company who manufactures sports shoes and sells them through an e-commerce website or at their own retail store is employing a direct channel of distribution.

Detailed explanation-5: -There are two types of distribution channels: direct and indirect. As the names would imply, direct distribution is a direct sale between the manufacturer and the consumer, and indirect distribution is when a manufacturer utilizes a wholesaler or retailer to sell their products.

There is 1 question to complete.