The Pros and Cons for Indirect Sales Distribution Model My last post talked about the direct model of distribution (one’s own sales force). Either the distribution can take place directly from the producer or it can be done with the help of intermediaries. As the names would imply, direct distribution is a direct sale between the manufacturer and the consumer, and indirect distribution is when a manufacturer utilizes a wholesaler or retailer to sell their products. It starts selling its products online through Amazon, Ebay and other such Online E-commerce portals. The primary advantage of direct is having control and the ability to give direction to the sales team. Very demanding: Once you start uploading videos, you have to work hard and be consistent. By . While selecting the right distribution channel, marketers use distribution strategies, which are heavily influenced by the structure of the market and the company’s resources. BALTIMORE—As the distribution landscape continues to fragment, revenue managers are being tasked with keeping tabs on the latest and greatest new platforms. Pros and Cons of Distribution Sales Channels Companies often choose distribution channels because they are physically unable to access a given market. The marketing managers never had the desire to change the normal way of distributing channels. That way, the best chance for success can be found. Low sales, marketing and distribution cost – the channel partner usually has an established presence, is known and trusted by local customers and already advertises their brand and the value it offers. If you have a small number of customers, you can deal with them directly, but if you are expanding your operations, you may find it difficult to reach a larger, more widespread customer base by just increasing the size of your sales force. But this attitude seems to be changed in the soon future. Selling your goods through a retail distribution channel is one option for reaching customers and prospects efficiently. There are two types of distribution channels: direct and indirect. Whether due to the market being in another country, another time zone or another continent, companies look to distributors to represent them in markets the company can't reach. 5 emerging distribution channels pros, cons 29 JUNE 2012 8:59 AM Hoteliers during a HSMAI workshop analyzed the pros and cons of five emerging, discount distribution channels. Multi-layered distribution system involves the hiring of intermediaries at various levels of distribution to facilitate the transfer. An apparels brand has just started its business and it wants to reach as many customers as it can. When we opt for a strategy of selling through distribution channels very often we have to face the dilemma of efficiency vs. closeness to the end-user. To make the product available to the target audience, companies use distribution channels. Your distribution channels are reduced. 2. These disintermediation pros and cons show that it can be beneficial to form direct relationships with buyers, but it is also important to have the internal mechanisms in place to take on all the work of intermediaries before starting. Example of Multi Channel Marketing. Cons: 1. 2. As your product brand grows, work becomes very demanding and you have to keep up with the demands. Introduction to distribution channel Strategies regarding distribution channels were always considered to be as a very safe area and without innovation and creativity in marketing. The involvement of intermediaries into the distribution channel has both pros and cons. Here are some of the pros and cons of channel sales: Pros. At the same time, it creates its own portals too so that people can browse their entire inventory online. Little control over video distribution: You can control the distribution of your content in the YouTube medium. Managing distribution channels: pros and cons Building a distribution strategy is one of the greatest challenges for an organization.