subject: Direct Distribution [print this page] Introduction to direct distribution: Introduction to direct distribution:
The marketer has several options to consider , when he thinks to make available his product to the final customer. It depends on several factor, which option he chooses. For example the marketer can not sell through a retailer , if he refuses to sell a particular product. A marketer hs following options, when he thinks about choosing a distribution system :
1. Direct Distribution System
2. Indirect Distribution System
3. Multichannel Distribution System
Direct Distribution System
In direct distribution system , the marketer reaches the intended customer of their product directly. There is no third party between the marketer and the customer.The direct distribution can further be divided in the following way , on the basis of the communication, which takes place, when a sale occurs:
1. Direct Marketing System: In this system the cusomer comes to know about the marketer product either through non- personal sources of the marketer such as visiting the marketer website , through product catalog, or through personal communication through a customer representative , who is not a salesperson, such as toll free tele calling.
2 Direct Retail System: In this the customer buys the product through retail outlets operated by the marketer. Starvucks will come in this category.
3. Personal Selling: in this category , a person directly visits the customer, and persuade her to buy the prduct.In this the person may not directly sell the product, but he generates the sales.
4. Assisted Marketing System: In this the marketer depends on others to communicate about the product, but handles the distribution himself. ebay will come in this category. ebay helps bring the buyers and sellers together.
Benifits of Direct Distribution
The main benefit of the direct distribution is that the customer has direct contact with the customer. The service of the marketer is also very good in this case. The marketer is aware of the market condition indirect distribution and can change the product according to that.There is faster communicationin direct distribution.There is greater chance of repeat business in direct distribution. The brandimage of the company isrightly placed in thedirect marketing.
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Drawbacks of Direct Distribution
The main drawback of the direct marketing is , it is very expensive. The coverage is also very limitedin comparison to indirect distribution. Some times direct ditribution can annoy the customer also, like phone calls from companies.Sometimesit can be that the salespeople can focus only on the sales and not on the satisfaction of the customer.
