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Homework answers / question archive / Explain the terms "channel length" and "width mean" in regards to a distribution channel
Explain the terms "channel length" and "width mean" in regards to a distribution channel.
Today's businesses use both traditional and conventional channels depending on the type of product they are marketing, the type of consumers who are being targeted, the area going to be covered, unit cost, etc. The length and width of the channel vary according to the above-mentioned factors. Now let us see what is meant by channel length and channel width.
Channel length can be defined as the number of intermediaries or entities present in the distribution channel between the producer and consumer, for example, wholesaler, distributor, stockist, retailer, etc. In a direct channel, the length of the channel is zero since there won't be any intermediaries between the producer and the consumer. The producer will be selling the product directly to the consumer.
Channel width can be defined as the number of intermediaries or entities engaged in the distribution channel for providing the same function at different stages of the distribution channel. Say for example the number of wholesalers, number of distributors, number of retailers, etc. In the case of FMCG companies, there may be many distributors for taking products to different parts of the country, there may be many wholesalers to ensure product supply to different retailers and there also may be many retailers to ensure that the product is available to all the consumers.