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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.
Simple Marketing Every product and service,
whether an automobile, a
System watch, a personal computer,
or office furniture, must
Communication somehow be made available
to billions of people.
Product/Service Products must also be made
Producer/Seller Money Consumer available to millions of
industrial firms, businesses,
Feedback 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.
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