Question

A direct marketing channel typically involves a producer and a consumer. In contrast, an indirect channel is a channel which includes one or more intermediaries (distributor, broker or agent). Companies usually employ multiple channels to reach more customers and improve sales. Some organizations may improve sales is by forging strategic channel unions while other firms may seek methods to trim middlemen within the channel. This process is known as disintermediation. Some of the channels through which companies make efforts to gain entrance into foreign markets include exporting, direct foreign investment, franchising, joint ventures, and licensing. With this in mind, write a short paper which provides answers to the questions below:

• Are direct marketing channels possible for some products and not others? Why or why not?
• Explain the value middlemen can add to products sales and marketing success.
• Think of the products you currently use. Are there any of them you would prefer to buy through different marketing channels? Why?

Answer 1

Direct marketing channels are more suitable for the products which are either very specific, catering to niche segment or the ones with high complexity that needs consultative selling. These products can't be sold through intermediaries as they can't provide such value addition to the customers by helping them to make purchase decisions. The examples are complex industrial machinery, high tech products etc. On the oher hand, products of day to day use like grocery, consumer durables, clothes can be sold efficiently through intermediaries.

The middlemen can help the company to reach to the customers in a better way by providing them the right quantity, at right place, time and cost. They help to reach the company to each segment of customers at their place of dwelling and in the way convenient to them. The middlemen act as a link between the customers and the company and povide them with vital information on demand trends and consumer sentiments about the products and help them to take strategic actions leading to improvement in sales performance.

I use many products for my home and office. I would like to purchase the daily need commodities through intermediaries. These products include my daily bread and butter, toiletaries, clothings, shoes and the like. It is so because I want them in least time, cost and right at the place of my living.  I need some specifc chemicals for my office which I would like to purchase directly through company, as I want to make sure that I buy the right items, after discussing with company experts. The other reason behind direct purchase is the high volume and cost involved, and I can't afford to make a wrong decision.