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A marketing channel refers to the path through which goods and services move from the producer to the final consumer or industrial user. It performs important functions such as transportation, storage, financing, risk bearing, promotion and facilitating the transfer of ownership. Marketing channels can broadly be classified into direct and indirect channels. A direct channel is a distribution channel in which the producer sells goods directly to the final consumer or industrial user without involving any intermediary. The producer has direct contact with customers and controls the distribution process. For example, a manufacturer selling products through its own retail outlets, website, sales force or factory showroom uses a direct channel. The basic structure is: Producer → Consumer Direct channels are useful when the producer wants greater control over pricing, customer service and distribution. They may also reduce intermediary margins and provide direct information about customer needs. However, the producer has to undertake distribution activities ___ _________ _______ ______ _________ _____ _____ ______ ______ ____.
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