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Written Assignment-7: Direct Marketing...

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1 Writing Unit 7: 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:

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Are direct marketing channels possible for some products and not others? Why or why not?

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Explain the value middlemen can add to product sales and marketing success.

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Think of the products you currently use. Are there any of them you would prefer to buy through different marketing channels? Why?

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Direct Marketing

Anonymous Business School, University of the People BUS5112: Marketing Management Dr. Lynne Corte October 21, 2020

3 Direct Marketing According to Principles of Marketing (2010), a company's medium of selling products is as important as the products itself (p.214). The shortest marketing channel, known as the direct channel, consists of just a producer and a consumer, whereas the indirect channel comprises one or more intermediaries such as wholesaler, distributor, broker, or agent (p.223). Intermediaries have the same impact of selling the product as producers. Taking down middlemen is always not a wise idea. Big giants like Walmart might not need middlemen, but if small shop owner takedown middlemen then he might have to do the work of middlemen such as storing a large quantity of product that costs a lot of money.

Are direct marketing channels possible for some products and not others? Why or why not? Direct marketing channels are possible for some of the products and impossible for others. SMS, emails, calls, door to door service, letters, etc. are some of the examples of direct marketing. For example, a company is planning to have a sale, so the company could send SMS to its subscribers as a part of direct marketing. Email marketing is one of the most widely used direct-marketing methods due to its inexpensive costs. Another example is email. 59% of B2B marketers call it their most effective channel for revenue generation (Over 50 tips to increase ROI across top 10 direct marketing channels, 2018). Companies can collect consumer email subscriptions through their websites or social media and send these consumers an email offering discounts, promo codes, or freebies.

A company that wants to measure the response rate of a product or service would opt for direct marketing. Direct marketing eliminates the expense of a middleman. This could be useful for companies who want to cut down their cost in storing, shipping, or any service through a

4 middleman. Businesses that want to have more direct consumer contact also prefer direct marketing, such as beauty salons.

Explain the value middlemen can add to product sales and marketing success. Middlemen typically don't produce anything but specialize in selling or distributing the products between two parties. A middleman provides logistic support. That is, they ensure a smooth and effective distribution of goods, and they also take care of the sorting and storage of products (Stewart, 2019). A middleman knows the consumer market better than a consumer, and that is why they can enhance a relationship between a buyer and a seller. They provide consumers feedback and the manufacturers are able to improve their product because of them. Intermediaries also may share the promotional cost of a product and give consumers an option of easy payment.

Intermediaries may also provide warehousing facilities to producers who are unable to store a bulk inventory. It saves the sellers the cost and inconvenience of storing bulk products. Middlemen also make it convenient for consumers to buy the product at convenient locations. A middleman is able to sell a product, bought in bulk, in a smaller or less count (The Roles of Middlemen in Business, n.d.)

Think of the products you currently use. Are there any of them you would prefer to buy through different marketing channels? Why?

Back in New Delhi, India, we had street vendors who use to buy vegetables from the vegetable market and then would sell it to the local consumers. The vegetable market only sells vegetables in bulk, so it was useless for any consumer to go there. There have been times,

5 especially during rains, or any strike, that the vendors would sell the vegetables at a very high price. The middleman (vendor) would generally take advantage of the situation and price the vegetables according to their wish, and helpless people can't do anything except buying from them. I wish that I could buy vegetables directly from the market at a lower price. Or maybe there could be supermarkets with fixed prices only for vegetables and fruits.

Conclusion Direct marketing or indirect marketing, middleman or no middleman, depends on the market segment, seller, buyer, product, and the price involved. Companies like insurance companies prefer direct marketing and usually don't need a middleman, whereas companies like Coca-Cola relies on indirect marketing, and cannot sell without intermediaries. Using the right channel can be a daunting task if, however, used properly, can benefit both consumers and producers.

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References

Over 50 tips to increase ROI across top 10 direct marketing channels. (2018, September 11). JoshMeah Blog. https://www.joshmeah.com/blog/using-the-10-best-direct-marketingchannels-to-increase-profits

Principles of marketing. (2010). The University of Minnesota Publishing. https://open.lib.umn.edu/principlesmarketing/

Stewart, D. (2019, January 22). The advantages and disadvantages of intermediary distribution. bizfluent. https://bizfluent.com/list-6656721-benefits-supply-chain-managementsystem-.html

The roles of middlemen in business. (n.d.). Hosbeg Blog. https://hosbeg.com/roles-middlemenbusiness/

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