BUSINESS ADMINISTRATION
RETAIL MARKETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The firm is in direct contact with customers
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A new company has limited resources
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Independent middlemen will not cooperate
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Suitable intermediaries are not available
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The firm wants complete control over the marketing job
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Detailed explanation-1: -Indirect distribution allows us as a producer to reach more customers because we don’t have to have stores or ship directly to each individual customer who wants to buy our product. That can also help us to share the cost of our inventory.
Detailed explanation-2: -Direct distribution allows brands to build genuine relationships with the end users of their products. Companies can respond to customer feedback and product performance reviews. Direct to consumer fulfillment services gives brands the opportunity to build customer loyalty and trust by engaging with them.
Detailed explanation-3: -Indirect distribution involves third parties, like warehouses, wholesalers, and retailers. Direct distribution gives companies more control over the whole process. Indirect distribution may allow companies to focus on their core business while outsourcing distribution to an expert.
Detailed explanation-4: -Indirect channels: When a manufacturer takes help of one or more middlemen to move goods from production place to the consumption place, the distribution channel is called an indirect channel.