Marketing Channel

. Marketing Channel
A set of interdependent organizations involved in the process of making a product or service
available for use or consumption by the consumer or business user. Figure summarizes the simple
marketing system that consists of customer, producers that are having some thing valuable for
making transactions. These transaction are made in exchange process and creation availability of
products for customers. This availability is created by using networks of distribution channels.
Every product and service,
whether an automobile, a
watch, a personal computer,
or office furniture, must
somehow be made available
to billions of people.
Products must also be made
available to millions of
industrial firms, businesses,
government institutions, and
other organizations
worldwide. Firms try to
realize this goal through the
creation of distribution channels.
Channel structure has three basic dimensions: the length of the channel, the intensity at various
levels, and the types of intermediaries involved. Channel intensity ranges from intensive to
selective to exclusive. Intensive means that there are many intermediaries. Selective means that
there are a smaller number of intermediaries. Exclusive refers to only one