Direct marketing as a channel of distribution
Direct marketing is the direct selling of products to the consumer. Examples: telesales, e-commerce, vending machines and direct mail Advantages
* Because there is no intermediaries, the businesses does not have to share so much of its profit * Firms can have direct control over their marketing
* Developments in e-commerce, which means that this channel of distribution is growing in popularity among customers * Direct marketing can also reach those potential customers who do not have easy access to retail outlets. * Usually cheaper than above the line techniques
Telesales or telemarketing
The use of the telephone systems to sell products directly to potential customers. * Usually they use automated voice or text messages.
* Commonly used by firms that have a database of existing clients, such as satellite television and insurance companies Disadvantage
The use of mass telephone calls can be very costly
Trading via internet.
Now, business use dedicated websites to provide product information and payment facilities to entice customers from around the world to buy their products. E commerce is also an effective way to reduce the costs and risks of international marketing Not suitable for
* personalized service, such as cars or jewelry,
* retailers, such as supermarkets or motor vehicle dealers Online trading will become an increasingly important channel of distribution as more and more people have access to the internet
The business sending promotional material via the mail system to entice customers to by a firm’s products. Business that have customers database usually use this channel of distribution. Local run fast-food restaurant usually distribute their menus to nearby residents and offer a home delivery service to the customers. Advantage
It can provide a personalized communication service since correspondence is directly addressed to the...
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