Practicing Success
Practicing Success
CUET Preparation Today
| Timmy has decided to sell his range of organic food products through his own retail outlets. Identify the channel of distribution being adopted by the company. |
Zero Level One Level Two Level Three Level |
| Zero Level |
| Direct Channel (Zero Level): The most simple and the shortest mode of distribution is direct distribution, where in the goods are made directly available by the manufacturers to customers, without involving any intermediary. This is also called zero level channel. A straight and direct relationship is established between the manufacturer and the customer. For example, when a manufacturer sells his goods through his own retail outlets (e.g., Mc Donald, Bata); it is referred to as direct channel. Similarly, mail order selling, internet selling and selling through own sales force, (e.g., Eureka Forbes) are example of direct selling or zero level channel. |
