You are have been asked by your senior management to prepare a report identifying the distribution channels available to your company for entering a new market. Prepare a brief paper defining direct...

ANSWER TO Q1
Definition
A direct channel of distributionillustrates a state of affairs in which the manufacturer sells a
product unswervingly to a consumer devoid of the assistance of mediators. A direct chain of
distribution may possiblyentail face-to-face sales, computer sales or mail order nevertheless does
not engage any form of distributor apart from the unique producer.Door-to-door Selling, Chain
Stores, Post Office or Courier and Telemarketing are examples of direct channel distribution.
Advantages
Employing a direct channel of distribution to hook upcustomers with the product, particularly a
Web-based channel can have quite a fewadvantages. Most significantly, web-based promotion
has littleoperating cost and furnishesthe product a potentially worldwide reach. Since no
mediatorsdistribute the profits, nearly all direct distribution channels are inclined to have
elevated rates of profit compared to indirect distribution channels. Direct distribution by means
of the Internet is opportune for clientele and accessible 24 hours a day. Lastly,
severalclientelesbe pleased about the prospect to furnish profits unswervingly to producers and
artists.
Disadvantages
The majornoticeable disadvantage is that a direct distribution channel is unable tocontend with
the geological reach and business dimensions of a distribution channel that incorporatesforemost
wholesalers and retailers. If oneformulates specialty coffee, one cannot vend as much product
over the company website as one can if onesells through chief grocery store chains. Some judge
another shortcoming to direct distribution of substantial products by phone, mail or Internet is
that clientele are frequently asked to shoulder the burden of shipping overheads. Mails have little
levels of efficacy.
Definition
Indirect channel of distribution is a chain of mediatorsin the course of which a product
progresses in order to be made obtainable for procurement by a customer. An indirect channel of
distribution characteristicallyentails a product transient through supplementary steps as it
progresses from the manufacturingbusinessby means of distributors to wholesalers and then
retail stores.Manufacturer, Manufacturer Agent, wholesaler, Retailer and Sales Representatives
are examples of indirect channels of distribution.
Advantages
It isa great deal cheaper and trouble-free for a company to vend to a warehouse, compared to set
up their individual retail channels to vend their product. Middlemen are sales proficient.
Functional when zoning averts home sales. Helpful when location of home foundation is too
distant from...