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Channels of distribution
Indirect Channel of Distribution
Advantages of indirect distribution method
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The
experienced agents deal with customers, which allows the businesses to focus on
core
issues
Transportation
and
storage
it taken care of by
intermediaries
There is no need to hire
specialised
staff to be
sales
complaints
They do not have to deal with
customer complaints
They enjoy the
benefits
of bulk orders from the
wholesalers
Better market coverage
is achieved
Intermediaries
understand how the
market
operates
Consumers are often
spread
across the country, distribution needs to be
widespread
as well
Direct distribution requires a
large investment
in advertising
Intermediaries sometimes provide
credit
to
consumers
, which wil help attract more consumers
Consumers are
spread
across the country and make the distribution process
expensive
Intermediaries
have expert
knowledge
of the distribution