Which of the following statements about marketing channels and channel intermediaries is true? Direct mail, retail sales and online sales all belong to the personal channel. The indirect method involves independent parties such as distributors, retailers and wholesalers. A direct method is preferable if after-sales service and product customization are important. An indirect method can be more effective in other cases. However, a business must consider its position in the market to choose the best delivery method.
A company may have many types of marketing channels. A direct channel, on the other hand, is one where the product is controlled by the manufacturer throughout its life cycle. In a direct channel, the product remains under the control of the manufacturer and goes directly to the customer. A direct channel, on the other hand (or indirect channel), is a type where the company retains control over the product from its manufacturing stage to its purchase. In a direct channel, the company has direct contact with the customer while the agents are compensated on a commission rate. A direct channel enables a company to reach a larger number of customers and perform functions that the sales force cannot.
A direct selling model is most cost-efficient for serving large retailers. However, direct selling is expensive for small businesses, and many marketing services companies use a VAR model to sell their products. By using VARs, these companies assemble different vendors’ products and package them together for specialized segments. These VARs require a marketing manager with branded skills and a thorough understanding of the distribution model of tangible goods.
In a selective distribution model, the two parties try to benefit from each other’s products but do not develop a close relationship. For example, Pat is planning to sell his kites at Panama City Beach in the summer. But he needs to find suppliers and pre-order all the kites he thinks he can sell at the beach this summer. But he needs the money to buy the necessary supplies and equipment.
In a direct sales model, the goods sold are distributed directly between the manufacturer and retailer. A direct sales model is more efficient when consumers need time to choose their products. A retailer buys the product from the manufacturer and sells it directly to the consumer. The latter method is ideal for tableware. It is a more effective marketing channel than a traditional one. A more direct marketing approach is better for tableware, furniture, toys, and other shopping goods.