When assessing the different distribution channels it is very important to know that distribution channels are the ways in which companies sell their products and services. Knowing the target market and their demographic needs will help establishing a marketing strategy that is successful. Another important factor is to determine channel members and how many will be needed to successfully get products or services to their consumers. There are two different distribution channel levels in marketing; the direct distribution level and the indirect distribution level. According to Kerin, Hartley & Rudelius the direct channel of marketing is when the producer and the ultimate consumers deal directly with each other. With a direct channel there is no intermediaries, the producer handles all channel functioning. A good example of a direct channel is an insurance company. The second distribution channel level is the indirect level. Unlike a direct distribution channel the indirect distribution level do have one or more intermediaries between the producers and the consumers who perform different functions ( Kerin, Hatley & Rudelius, 2013) . A good example of an indirect level of distribution is a company who uses industrial distributers or agents to reach users. In addition to channel levels in marketing there are also several channel organizations which include; conventional, vertical, horizontal, and multichannel marketing systems. In a conventional marketing system, producers, wholesalers, and retailers are separate businesses that are all trying to maximize their profits. The vertical
References: Fisher, E., Staiger, D., Bynum, J., & Gottlieb, D. (2006). Creating Accountable Care Organizations: The extended hospital medical staff. Health Affairs, 26(1), 44-57. Journal of Marketing Research (JMR); May83, Vol. 20 Issue 2, p158-166, 9p, 1 Diagram, 3 Charts Kerin,R.A., Hartley, S.W., & Rudelius, W (2011) Marketing [online version]. Retrievedfrom AIU. Principles of Marketing: MKTG205-1202B.Chapter1, pg 6.