Assignment - Types of Distribution
Assignment - Types of Distribution
MARKETING
- Clients may develop direct relationships with producers. It's also because of the
higher costs and operational challenges. Direct marketing is also one of the oldest
methods of product distribution. It excludes the use of a middleman, and the
manufacturer communicates directly with the consumer at the point of purchase.
Manufacturers supplying perishable or costly products for a geographically focused
target audience usually use direct networks. The company Tesla, which sells its own
vehicles to its customers, is the best example given in the video clip. To purchase
their vehicle, go to their website and place an order for a car.
RETAILER
- Producers will work with retailers to find buyers. Customers purchase the
commodity from the retailer, who then sells it to them. Manufacturers of shopping
products or clothing lines, as well as essential necessities, profit from a one-level
distribution channel. The best example of this is Wallmart, which buys a lot of goods
directly from the manufacturers. The company is able to do so because of its large
trade volume and its ability to reach out directly to suppliers due to its well-known and
well-known status.
What are the advantages and disadvantages of using each type of distribution
channels based on the video?
Disadvantage
RETAILER
Disadvantage
- one must wait for customers to come into the store, necessitating constant
presence in the store, which is a disadvantage of retail. Furthermore, because it is a
cash company, one cannot delegate the job to employees because cash cannot be
trusted blindly.