Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Enterprise marketing

Question:
Harshita is planning to set up a small manufacturing unit for manufacturing eco-friendly packaging material. She has decided to market her products through the conventional channel of distribution, which involves wholesalers and retailers. Identify the channel of distribution being adopted by the company.
Options:
Zero Level
One Level
Two Level
Three Level
Correct Answer:
Two Level
Explanation:
Manufacturer-Wholesaler-Retailer Consumer (Two Level Channel): This is the most commonly adopted distribution network for most consumer goods like soaps, oils, clothes, rice, sugar and pulses. Here the wholesaler and retailer function as connecting links between the manufacturer and consumer. Use of two middlemen in the channel network enables the manufacturer to cover a larger market area.