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Direct Intermediaries-
* companies can sell directly to consumers or retailers without intermediaries. it also includes reaching Institutional buyers.
*Selling of product & services via internet.
*If product is technically complex this system can be preferred.
* Ex. Banking services, Health services, credit cards, petrol/diesel (companies own outlet), education etc.
Indirect intermediaries-
*Goods may move through a set of intermediaries. Most FMCG companies follow this.
*Intermediaries know the market very well when compared to manufacturers.
*Ex. consumer durables and pharmaceutical products, mobile phones etc.
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What are disadvantages of indirect distribution channel?
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What is the major difference between a distribution channel for business making tangible products and firm producing hospitality and travel products?
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What is the difference between sales in and sales out?
"Sales in" is an action that you "sell" your products to any member "in" your distribution channels like distributors or retail outlets.After that, distributors or retail outlets sell the product to end user that is customers. It is called "Sell out" (of distribution channel).
What Distribution channel does Adidas use?
Adidas uses both a direct and indirect distribution channel for selling their products. The company will sell directly to the customer which make sup more than 58 percent of their profits. However, the company also sells as a wholesaler to other retail establishments around the world.
How might a distribution channel evolve from a conventional distribution channel to a vertical marketing system?
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