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Direct and Indisrect Channels of Distribution

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As part of the Marketing Mix, Place, or Channels of Distribution, is important to understand. What is the difference between Direct channels of distribution and Indirect channels of distribution?

It has been said that "channels of distribution may be the best opportunity for a sustained competitive advantage." Would you agree or disagree? Why?

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Solution Summary

The solution differentiates direct from indirect channels of distribution.

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The difference between the two channels of distribution is this: Direct channels distribute goods directly to the ultimate consumers while indirect channels utilize intermediaries before the product reaches the consumers.

Direct Channel
NIOS (n.d.) classified direct channel as a situation where "producers sell their goods and services directly to the consumers, there is no middleman present between the producers and consumers. The producers may sell directly to consumers through door-to-door salesmen and through their own retail stores.

Distribution from Producer to Consumers

Indirect Channel
Indirect Channel, on the other, is a situation where "the producer is producing goods on a large scale, it may not be possible for him to sell goods directly to consumers. As such, he sells goods through middlemen. These ...

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