Microsoft Word marketing doc

5.3
 
 
C
HANNELS 
U
SED FOR 
C
ONSUMER AND 
I
NDUSTRIAL 
G
OODS
 
Broadly speaking, there are two channels of distribution i.e.,
1)
Direct Channel, and 
2)
Indirect Channel 
In the case of direct channel, the manufacturer seals the goods directly to 
the consumers without any marketing intermediary. 
In the case of an Indirect Channel, the manufacturer sells the goods 
directly to the consumers through middlemen. 
1.
Direct Channel : 
The Direct selling can be done in one of the following three routes. 
a) The manufacturer can have his own sales depots that directly sell the 
goods to the consumers. 
For example : Retail show rooms of the Bata Shoe Company 
b) The manufacturer can adopt mail order system of selling in which the 
producer advertises his products in news papers and invite direct orders 
from consumers. Goods can be supplied directly to the consumers by 
mail, on receipt of orders from the consumers. 
Manufacturers 
Show Rooms 
Consumers 
Manufacturers 
Mail Order System
Consumers 

---

108
c) The manufacturer employees his own sales representatives to visit 
consumer houses and sell goods directly at their door steps. This is 
called as Door to door selling. 
For 
example : The sale of Eureka Forbes Ltd’s, Euroclean vacuum 
cleaner. 
In the direct channel the manufacturer reaches the consumers directly 
without the assistance of any marketing intermediaries. 
Direct Channel is highly useful in the following circumstances. 
i) 
Perishable goods 
: If the manufacturer’s goods are perishable in nature, 
there is every need to dispose off the stock at the earliest. 
For example : Sale of vegitables, milk, butter, eggs, fish, etc. 
ii) 
Less output 
: If the manufacturer’s output is less and market is limited 
direct channel is desirable. 
For example : Bakery owners manufacture bread, biscuits, cakes etc., 
and sell them through their own shops. 
iii)