Welcome to the ChannelPoint Wiki pages, an online reference for the Australian IT channel.

Our primary intention is to create a body of knowledge for sales channels to be utlized by sales and marketing professionals. Contributors will also be interested in providing objective details about channel and certification programs.

Your contributions are required! Show the channel your expertise.

Channels

A number of alternate 'channels' of distribution may be available:

• Selling direct, such as via mail order, Internet and telephone sales
• Agent, who typically sells direct on behalf of the producer
• Distributor (also called wholesaler), who sells to retailers
• Retailer (also called dealer), who sells to end customers
• Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They may be just as important for moving a service from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc.

There have also been some innovations in the distribution of services. For example, there has been an increase in franchising and in rental services - the latter offering anything from televisions through tools. There has also been some evidence of service integration, with services linking together, particularly in the travel and tourism sectors. For example, links now exist between airlines, hotels and car rental services. In addition, there has been a significant increase in retail outlets for the service sector. Outlets such as estate agencies and building society offices are crowding out traditional grocers from major shopping areas..

Source: http://en.wikipedia.org/wiki/Distribution_Channels#Channels

Channel members

Distribution channels can thus have a number of levels. Kotler defined the simplest level, that of direct contact with no intermediaries involved, as the 'zero-level' channel.

The next level, the 'one-level' channel, features just one intermediary; in consumer goods a retailer, for industrial goods a distributor, say. In small markets (such as small countries) it is practical to reach the whole market using just one- and zero-level channels.

In large markets (such as larger countries) a second level, a wholesaler for example, is now mainly used to extend distribution to the large number of small, neighbourhood retailers.

In Japan the chain of distribution is often complex and further levels are used, even for the simplest of consumer goods.

Source: http://en.wikipedia.org/wiki/Distribution_Channels#Channel_members

Channel structure

To the various `levels' of distribution, which they refer to as the `channel length', Lancaster and Massingham also added another structural element, the relationship between its members:

• 'Conventional or free-flow - This is the usual, widely recognized, channel with a range of `middle-men' passing the goods on to the end-user.
• Single transaction - A temporary `channel' may be set up for one transaction; for example, the sale of property or a specific civil engineering project. This does not share many characteristics with other channel transactions, each one being unique.
• Vertical marketing system (VMS) - In this form, the elements of distribution are integrated.

Source: http://en.wikipedia.org/wiki/Distribution_Channels#Channel_structure