A direct marketing channel typically involves a producer and a consumer. In contrast, an indirect channel is a channel that includes one or more intermediaries (distributor, broker, or agent). Companies usually employ multiple channels to reach more customers and improve sales. Some organizations may improve sales is by forging strategic channel unions while other firms may seek methods to trim intermediaries within the channel. This process is known as disintermediation. Some of the channels through which companies make efforts to gain entrance into foreign markets include exporting, direct foreign investment, franchising, joint ventures, and licensing. With this in mind, write a short paper which provides answers to the questions below:
- Are direct marketing channels possible for some products and not others? Why or why not?
- Explain the value middlemen can add to product sales and marketing success.
- Think of the products you currently use. Are there any of them you would prefer to buy through different marketing channels? Why?