Question

In: Operations Management

What's the difference between direct and indirect marketing channels?

What's the difference between direct and indirect marketing channels?

Solutions

Expert Solution

Difference between direct and indirect marketing channel is as follows -

1) Definition - Direct channel involves the delivery of goods directly from manufacturer to customer. The indirect channel involves the delivery of products with the help of intermediaries.

2) Number of levels - Direct channel has a zero level. It means there is no intermediary. Indirect channel involves three levels. One level has a supply chain of manufacturers, Retailers, and consumers. Two-level has a supply chain of manufacturer, wholesaler, retailer, and consumer. Three-level has manufacturer, agent wholesaler, retailer, and consumer

3) Customer base - Direct channel is used by the companies which have a small customer base. The indirect channel is used by the company, which has a large customer base.

4) Example - Example of a direct channel is online selling. An example of an indirect channel is selling goods to the wholesaler.


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