[ToC]

 

Bruce Mallen, Principles of Marketing Channel Management, Lexington Books, 1977

A CHANNEL SORTING AND FLOW PROCESS

Figure 3-2 is an example of how the sorting concept works. In this figure there are two manufacturers, A and B, selling to one wholesaler, C, who in turn sells to three retailers, D, E, and F. Manufacturer A, who produces product X, in a given time period wishes to sell three units. Manufacturer B manufacturers product O and in that same time period wishes to sell three units. Wholesaler C is willing to buy all units of X and O, while retailers D, E, and F each wish to handle one unit of X and one unit of O. In total, there are five big arrows, (rather than six, if C did not exist), each indicating a contact between wholesaler C and the other five channel members.