Types of Channels (14) Flashcards Preview

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Flashcards in Types of Channels (14) Deck (53)
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1

All types of channels are either...

direct and indirect

2

When learning about channels, the major distinction is whether a channel is _____ or _______

direct, indirect

3

What is a direct channel?

A direct distribution channel is one that the manufacturer or supplier owns.

4

Who owns a direct channel?

a supplier or manufacturer

5

In a direct channel there are no ____-_____ intermediaries involved in selling or handling the brand’s products.

third party

6

IN a direct channel no ______ comes between the selling manufacturer and the buying customer.

distributor

7

No distributor comes between the...

selling manufacturer and the buying customer.

8

Brands that use direct channels own all the _______ and ______ functions as well as the relationships the brand has with its customers.

sales, delivery

9

What are some examples of direct channels?

- A company sales team - A company store (e.g. Apple stores are a direct channel for Apple) - A company’s online store - A company’s catalog

10

A manufacturer has total _______ over its brand and every aspect of the experience a customer has when interacting through direct channels.

control

11

A manufacturer has total control over its brand and every aspect of the experience a customer has when interacting through...

direct channels

12

When are direct channels prevalent?

- when customers are large - when customers insist on it - when the sales process is complex - When the sales process delivers value

13

When a brand has ______ customers, it typically doesn’t want anyone or anything to come between it and those customers.

For example, IBM has a sales force that calls directly on its most important commercial customers. Likewise, large pharmaceutical companies employ sales representatives that sell directly to healthcare organizations. think B to B

14

When the buying journey for a solution involves extensive customer education, negotiations, solution customization, special terms and conditions, or concessions, these sales usually occur through a...

direct channel

15

When the buying journey for a solution involves extensive customer ______ ,_______, solution customization, _____ ______ and conditions, or concessions, these sales usually occur through a direct channel.

education, negotiations, special terms

16

It’s not uncommon for customers to receive a lot of _______ through the sales process in the form of advice, expertise, and consulting.

value

17

It’s not uncommon for customers to receive a lot of value through the sales process in the form of...

advice, expertise, and consulting.

18

What are the factors that could cause a brand to opt for direct distribution?

- Margin - faster supply chain - support and expertise - discounts - adding value

19

distribution channels have a _____.

cost

20

Indirect channels are usually paid a percentage of the sales they make, or what’s commonly referred to as a...

margin

21

When the speed of getting products into the hands of customers is a major part of the value AND when indirect channels slow down the supply chain, then...

brands will use direct channels.

22

When the solutions a brand sells require specific ______, support, or ______ that only the brand can provide, then sales must occur through direct channels.

advice, expertise

23

What are the downsides of using direct channels?

When a company opts to use direct channels only, it assumes all the financial risks since there are no retail or other indirect distribution channels to share them. I

24

It’s sometimes also expensive to go only with direct channels because brands must develop the _______ to do so.

infrastructure Direct distribution may require warehouses, a fleet of delivery trucks, forklifts, and other expensive equipment.

25

What is an indirect distribution channel?

An indirect distribution channel is any third-party intermediary that is between the selling brand and the buying customer.

26

An indirect distribution channel is any third-party _________ that is between the selling brand and the buying customer.

intermediary

27

what is a third-party intermediary?

simply another business, one that is separate from the brand whose products it carries

28

what is a common type of indirect distribution channel?

retailer

29

what are some examples of retailers?

Amazon, Target, and Walmart, which sell many brands but don’t manufacture or produce anything they sell. T

30

Amazon, Target, and Walmart carry the brand products that we buy and get a _____ for what they sell.

margin