6.4   Number of Channels


The product of a company is still not completed without reaching the user of it.
Different companies have different strategies of delivering the final products to the final users.
The layer that performs certain work to bring product close to the customer is called channel level.
In this regard, there are direct and indirect marketing channels.
A production company that delivers product to the final users without intermediaries is said to have direct marketing channel.
A production company that delivers product to the final users without intermediaries is said to have direct marketing channel.


6.4   Number of Channels



Figure 6.1 Marketing Channels

The table above shows different levels of marketing.
The first channel is direct marketing channel. Channel 2 has only retailer as an intermediary.
Channel 3 involves wholesaler and retailer before the final user gets the products.
Finally channel 4 involves wholesaler, jobber and retailer.


6.4   Number of Channels


In the contemporary marketing, instead of single channel to reach customer, many companies use multichannel distribution systems.
Multichannel distribution system is a distribution system in which a single firm set up two or more marketing channels to reach one or more customer segments (Kotler and Armstrong, 2004).