Advantages of direct distribution method

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