Write explanatory notes on Direct channel, Short channel and Long channel.

Direct Channel: It is one of the types of distribution channels. In a direct channel, no middlemen is involved between producer and consumer and the producer directly. sells the goods to the consumes. With the help of traveling salesmen and by establishing their own retail shops and show¬rooms, producers can maintain a direct and personal link with the consumers. One can find retail shops or showrooms in various localities, established by producers, with a view to sell the goods directly to the consumers.

The chain goes on as follows:
Producer → Traveling salesman → Consumer
Producer → Retail shopper showroom → Consumer

The duty of the salesmen is to book orders by contacting potential buyers personally and supply can be arranged from the stock held by the producer. It proves to be beneficial to the consumers as they can get the goods easily in order to fulfill their needs.

Short Channel and Long Channel: When goods can be sold directly to the consumers in short span of time it is called short channel or direct channel. In such a channel, no middlemen is present between the producer and the consumer. Businessmen prefer short channels, when the distribution and handling costs are more. For example—short channels help in supplying perishable products i.e. milk, eggs etc, it is preferred in case of heavy and bulky products like cement, steel also.

Long channels—When the goods cannot be supplied directly to the consumers by the manufacturer, it is called long or indirect channel. Businessmen have to involve middlemen like agents, retailers and wholesalers in the channel of distribution. Light¬weight and small-size items like stationery, toothpaste, dress material, pocket calculators etc. are supplied through long channels. Such a channel is preferred for intensive distribution of goods.

Tags: B.Com

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