Question

What are some of the disadvantages that can result when companies use channels of

distribution to market their products overseas? Answer this question in 400 words

Answer 1

The following are some of the disadvantages that can result when companies use channels of distribution to market their products overseas

• Revenue loss- Commonly, manufacturers sells their products to the middlemen at a comparatively lesser price than the price offered to the final shoppers by these middlemen. This causes a loss in revenue to the producers. Lest they make a specific profit out of reselling route the middlemen would never offer retailing services. Manufacturer could else have made greater profit if he had been able to a direct distribution.
• Loss of Communication Control- in addition to revenue loss, the manufacturer also loss control over the communication sent to the final buyers. The retailers may employ personal selling to intensify the size of their sales and have a individual plea to their customers. At times in the product marketing process the reseller may miscalculate the paybacks of the product leading to miscommunication. A times, evidence on product feature may be inaccurate
• Loss of Product Importance- the prominence given by the distribution members to a manufacture is out of the control of the manufacturer. For example, a postponement in transportation makes the product to drop its position in channel making sales to suffer.

· Scheduling- manifold distribution channel of marketing comprises a stimulating movement schedule. Payment of outside contracts resulting from multiple channel is another distribution challenge