All types of channels are either...
direct and indirect
When learning about channels, the major distinction is whether a channel is _____ or _______
What is a direct channel?
A direct distribution channel is one that the manufacturer or supplier owns.
Who owns a direct channel?
a supplier or manufacturer
In a direct channel there are no ____-_____ intermediaries involved in selling or handling the brand’s products.
IN a direct channel no ______ comes between the selling manufacturer and the buying customer.
No distributor comes between the...
selling manufacturer and the buying customer.
Brands that use direct channels own all the _______ and ______ functions as well as the relationships the brand has with its customers.
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
A manufacturer has total _______ over its brand and every aspect of the experience a customer has when interacting through direct channels.
A manufacturer has total control over its brand and every aspect of the experience a customer has when interacting through...
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
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
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...
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
It’s not uncommon for customers to receive a lot of _______ through the sales process in the form of advice, expertise, and consulting.
It’s not uncommon for customers to receive a lot of value through the sales process in the form of...
advice, expertise, and consulting.
What are the factors that could cause a brand to opt for direct distribution?
- Margin - faster supply chain - support and expertise - discounts - adding value
distribution channels have a _____.
Indirect channels are usually paid a percentage of the sales they make, or what’s commonly referred to as a...
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.
When the solutions a brand sells require specific ______, support, or ______ that only the brand can provide, then sales must occur through direct channels.
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
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.
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.
An indirect distribution channel is any third-party _________ that is between the selling brand and the buying customer.
what is a third-party intermediary?
simply another business, one that is separate from the brand whose products it carries
what is a common type of indirect distribution channel?
what are some examples of retailers?
Amazon, Target, and Walmart, which sell many brands but don’t manufacture or produce anything they sell. T
Amazon, Target, and Walmart carry the brand products that we buy and get a _____ for what they sell.