Identify the various distribution channels and explain the concept of market coverage.

The various distribution channels and explain the concept of market coverage :


A marketing channel is a sequence of marketing organizations that directs a product from producer to ultimate user. The marketing channel for a particular product is concerned with the transfer of ownership of that product. Merchant middlemen (merchants) actually take title to products, whereas functional middlemen simply aid in the transfer of title.


The channels used for consumer products include the direct channel from producer to consumer, the channel from producer to retailer to consumer, the channel from producer to wholesaler to retailer to consumer, and the channel from producer to agent to wholesaler to retailer to consumer. There are two major channels of industrial products: producer to user and producer to agent middleman to user.


Channels and intermediaries are chosen to implement a given level of market coverage. Intensive distribution is the use of all available outlets for a product, providing the widest market coverage. Selective distribution uses a portion of the available outlets in an area. Exclusive distribution uses only a single retail outlet for a product in a large geographic area.


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