Question

A direct marketing channel typically involves a producer and a consumer. In contrast, an indirect channel is a channel that 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 intermediaries 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 product 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

1) Yes direct marketing channels are possible for some products while other marketing channels might not prove situatable. This is because of the nature of product, its attributes and characteristics. For example the products that are perishable such as fruits, vegetables etc cannot be distributed through any other channel other than direct marketing because they might perish and become unpalatable if not made available to the market quickly.

Similarly there are expensive products or luxury goods such as Jewellery, Diamonds, expensive Paintings, electronic goods etc which also uses direct marketing channels over other because of their value to avoid threat of roberry , damage, etc Therefore these products might not be sold through intermediaries to avoid the risks involved.

Moreover whether a product will be sold just through direct marketing also depends on many other things. Direct marketing is usually prefered by organizations who sell branded and high end products and are financially very strong to set up their own marketing units. While some companies who are not financially strong might not be able to sell the product directly and would this require intermediary.

For instance the products which belong to luxury brands are also sold by manufacturers through direct marketing by setting up their units and appointing dealers. Such as the IPhone stores, Dior watches etc.

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2) A middlemen or an intermediary can add a considerable amount of value to product sales and marketing success because middlemen use various strategies to promote the products of manufacturers to increase their sales. Intermediaries put efforts to ensure that products are made available to the consumers at right place and right time to maintain their utility and value. Moreover they use tactics to motivate the customers to make purchases of products through maintaining close contact and good relationship with them. They out impression on customers through their good services and trustworthiness which encourages the customers to revisit and repurchase items. Therefore middlemen can enhance the sales and add value to marketing activities through understand customer better and taking steps to meet their needs.

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3) The products that I currently use are:

Smart phone: which I will prefer to buy through direct marketing channel to ensure that product is original and in good condition. I would prefer to buy smartphone through the dealer of the brand directly.

Shoes : I will prefer to buy shoes through indirect marketing channel such as through a retailer who will provide me with a variety of choices and product at different rates.

A bulk of stationary : I will prefer buying multiple stationery products that I use for my art through an indirect marketing channel such as through an Wholesaler who will give me such products at cheaper rates.

Laptop : This will also be prefered to be purchased through the direct marketing channel to avoid risk of damage.

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