CHANNEL DISTRIBUTIONSyarikat Inani Craft & Design used all the channel distribution but the nominal one is direct channel.

DIRECT CHANNEL

Happen when a producer deals directly with customers, without using intermediaries, it is using distribution.

Example: catalog shopping, on-line shopping, and television shopping network.

Syarikat Inani Craft & Design used direct channel as their medium to promote their products to customers. They sell their products directly to their customers.

ADVANTAGES DISADVANTAGES

Syarikat Inani Craft & Design receives

full differences between the

manufacturer’s cost and price charged

to the customer.

They also has full control over the

price to be charged to the customer.

They obtains firsthand feedback from

customers.

The firm lose focus of production.

Increase it cost when hire more

employees to perform all of the

distribution functions.

A manufacturer the deals directly with

final customers may have to sell on

credit, which can be costly and exposes

the firm to the risk of bad debts.

There are two types of channel distribution:

1. One-level channel2. Two-level channel

ONE-LEVEL CHANNEL

One marketing intermediaries is between the producer and the customer. Inani’s owner hired agents to help them sell and promoting their products.

Intermediaries who become owners of the product and resell them are known as merchants.

Examples: Wal-mart and Sears. Other intermediaries, knows as agents, bring together buyers and sellers without

assuming ownership of the goods they help distribute.

TWO-LEVEL CHANNEL

Two marketing intermediaries are between the producer and the customer.

PRODUCER RETAILER CUSTOMER

PRODUCER WHOLESALER RETAILER CUSTOMER