Sign In

Businesses use direct and indirect marketing channels and franchising to distribute their products or services to customers. Each has advantages and significantly affects a company's overall marketing and distribution strategy.

Direct Marketing Channels are channels where the company sells its products or services directly to the end consumer without intermediaries through a company's website, direct mail, telemarketing, or a company-owned physical store. It gives the company complete control over the marketing, selling process, and customer relationships. For example, Dell disrupted the computer industry by selling its computers directly to consumers through its website.

Indirect Marketing Channels involve one or more intermediaries, such as wholesalers, distributors, and retailers, to sell their products in different geographical areas or to many customers. They increase the product's reach and aid in inventory management, transportation, and after-sales service. For instance, Procter & Gamble uses retailers like Walmart and Target to sell its products to consumers.

Franchising is a business model where the franchisee is granted the right to use the franchisor's trademark or business system. The franchisor benefits from rapid expansion without needing significant capital investment, while the franchisee gains from operating under a proven business model with established brand recognition. A well-known example of franchising is McDonald's.

In conclusion, the choice between direct and indirect marketing channels and franchising depends on various factors, such as the nature of the product, target market, resources available, and the company's overall business objectives.

Tags
Marketing ChannelsDirect MarketingIndirect MarketingFranchisingDistribution StrategyMarketing And DistributionChannel DesignMarketing Channel AdvantagesDellProcter GambleMcDonald s

From Chapter 7:

article

Now Playing

7.5 : Marketing Channel Designs

Delivering Customer Value: Place to Everywhere

56 Views

article

7.1 : Place and Everywhere

Delivering Customer Value: Place to Everywhere

175 Views

article

7.2 : Delivery Networks

Delivering Customer Value: Place to Everywhere

117 Views

article

7.3 : Distribution, Logistics and Supply Chain

Delivering Customer Value: Place to Everywhere

190 Views

article

7.4 : Importance of Delivery Networks

Delivering Customer Value: Place to Everywhere

63 Views

article

7.6 : Vertical Marketing Systems

Delivering Customer Value: Place to Everywhere

71 Views

article

7.7 : Horizontal Marketing Systems

Delivering Customer Value: Place to Everywhere

295 Views

article

7.8 : Multichannel Distribution

Delivering Customer Value: Place to Everywhere

37 Views

article

7.9 : Omnichannel Strategy

Delivering Customer Value: Place to Everywhere

65 Views

article

7.10 : Channel Design Decisions

Delivering Customer Value: Place to Everywhere

232 Views

article

7.11 : Channel Management Decisions

Delivering Customer Value: Place to Everywhere

282 Views

article

7.12 : Power and Conflicts in Channels

Delivering Customer Value: Place to Everywhere

67 Views

article

7.13 : Retailers

Delivering Customer Value: Place to Everywhere

38 Views

article

7.14 : Retail Strategy

Delivering Customer Value: Place to Everywhere

49 Views

article

7.15 : Wholesalers

Delivering Customer Value: Place to Everywhere

37 Views

JoVE Logo

Privacy

Terms of Use

Policies

Research

Education

ABOUT JoVE

Copyright © 2025 MyJoVE Corporation. All rights reserved