Question

What are some of the disadvantages that can result when companies use channels of distribution to market their products overseas? Answer should be in between 350-400. and make sure i need new answer

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- in general, producers sells their products to the mediators at a comparatively lower price than the price open to the final customers by these intermediaries. This produces a loss in revenue to the producers. Lest they make a particular profit out of reselling process the middlemen would never offer retailing services. Manufacturer could else have made greater profit if he had achieved a direct delivery.
• Loss of Communication Control- in addition to revenue loss, the manufacturer also lose control over the communication conveyed to the ultimate buyers. The retailers may involve in private selling to upsurge the capacity of their sales and have a personal plea to their customers. At times in the product promoting process the reseller may misjudge the profits of the product leading to miscommunication. A times, information on product feature may be misleading
• Loss of Product Importance- the importance given by the distribution members to a manufacture is out of the control of the manufacturer. For instance, a postponement in transportation makes the product to lose its prominence in network making sales to suffer.

· Scheduling- multiple distribution channel of selling includes a stimulating movement schedule. Payment of external contracts ensuing from multiple network is another distribution challenge