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Channels of distribution
Direct Channels of Distribution
Advantages of direct distribution method
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Cards (10)
Manufacturers have control over the
product
and
marketing
The achieve better
end-user
price as there are no
intermediary
costs
The business does not need to share its
profit margin
with
intermediaries
Products become very expensive once all the
intermediaries
have added their own
mark-ups
There is direct contact with the
target
market for
feedback
and improvements
Sales
staff provide customer information for future
market
research
Selling through the
internet
allows
smaller
businesses to market their products all over the world
Business' websites can serve as both a
distribution
method and a
promotion
method
Well
trained
sales
staff are able to
promote
products effectively and establish good
relationships
with
customers
Suitable
intermediaries may not be available/
intermediaries
may not be willing to sell the particular product on behalf of the
manufacturer