Channel Structure

Question 1

What are the different channel structures?

Answer 1

Direct Channel and Indirect Channel

Question 2

Direct Channel

Answer 2

The shortest marketing channel that consists of two parties (producer and consumer)

• better for B2B

Question 3

Indirect Channel

Answer 3

The product passes through one or more intermediaries

• better for B2C

Question 4

What are the alternate channel arrangements?

Answer 4

Multiple channels, Non-Traditional Channels, Strategic Alliances

Question 5

Multiple Channels

Answer 5

• Direct AND Indrect

Question 6

Non-Traditional Channels

Answer 6

Internet, Mail order, Infomercial

Question 7

Strategic Alliances

Answer 7

Using someone else’s distribution channel and helps when entering a new market

Question 8

International Channels

Answer 8

Exporting - creating the product in your country and selling the product to a different company in a different country

Licensing/Franchising - allowing individuals to use your name and brand to operate a business in a different country

Joint Venture - a company that is already operating there and joining a venture with them to sell your product directly

Direct Foreign Investment - directly opening and operating your company in a different country