1.2.1 Types of Channels
Completion requirements
The channel of distribution used by a producer must suit the specific product being sold:
Longer, more complex channels are the most efficient, but they are the most expensive. Think of it this way. If you separate a whole task into several, specialized parts, you need more people to complete the task. However, as the people involved specialize in their parts of the task, they become more efficient, and completing the whole task becomes easier and more efficient.
- Direct channel
- One intermediary
- Two intermediaries
- Three intermediaries
Longer, more complex channels are the most efficient, but they are the most expensive. Think of it this way. If you separate a whole task into several, specialized parts, you need more people to complete the task. However, as the people involved specialize in their parts of the task, they become more efficient, and completing the whole task becomes easier and more efficient.