In the former article, I have explained about a fundamental principle of marketing channel.

Let me recap it for you. Marketing channel is the key to distributing a good. The producer can deliver products to end consumer smoothly through an appropriate marketing channel.

Now, we continue on marketing channel for goods. There are two marketing channels types based on the kind of goods; they are marketing channel for consumer goods and marketing channel for industrial goods.

Examples of marketing channel for consumer goods

1. Producer - Agent - Retailer - End customer
A manufacturer uses an agent as an intertermediary for delivering the product to a retailer. Finally, end consumer buys the product from the retailer.

2. Producer - Agent- Wholesaler - Retailer - End consumer
A Wholesaler is an intermediary between agent and retailer. The retailer buys the product from the wholesaler and sells it to the end consumer.

3. Producer - Wholesaler - Retailer - End costumer
This flow is a traditional marketing channel. Many companies implement this marketing channel strategy.

The producer can only serve to the wholesaler (who buys in bulk), then wholesaler has a right to sell the product to the retailer.

Finally, the retailer sells it to the end customer.

4. Producer - Retailer - Consumer
We can name this channel as an indirect marketing channel.

There are two conditions you can find in this marketing channel strategy:

a. Retailer (different organization from the producer) buys the product and then sells it to the end consumer.
b. Producer sets up retailer shop to serve end consumer.

5. Producer - End Consumer
This channel is the shortest and the simplest marketing channel. The manufacturer serves the customer without an intermediary. We can name it direct channel.

Now, we go to marketing channel for industrial goods.

Examples of marketing channel for industrial goods

There are four types of marketing channel to serve the industrial user.

1. Manufacturer - industrial user
This channel is the shortest marketing channel for industrial goods. We can say it as a direct marketing channel.

Direct marketing channel strategy is used by a manufacturer when a sales transaction is a large quantity.

This approach is suitable for these industrial goods such as locomotive, ship, plane, etc.

2. Manufacturer - Industrial distributor - industrial user
This marketing channel strategy is usually used by a company that manufactures an operational equipment and accessories. For examples building materials, Air conditioner, tools, etc.

3. Manufacturer - Agent - Industrial user
This marketing channel strategy is implemented by a company who doesn't have a marketing division. The company prefers to make a partnership with an agent to deliver the product to an industrial user.

4. Manufacturer - Agent - Industrial distributor - industrial user
A company applies this distribution channel strategy with concern that he has a small marketing division and prefers to develop a partnership with intermediaries like agent and distributor.

I hope you understand the example of a marketing channel for goods. I will continue on the next subject factors that are concerns to decide an appropriate a marketing channel.