In: Operations Management
What's the difference between direct and indirect marketing channels?
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.