B2B
1103
Problem
Explain how a direct distribution channel may be the lowest-cost alternative for one business marketer and the highest-cost alternative for another in the same industry.
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Direct distribution channel is organized and managed by organization itself so the cost of direct distribution channel is completely depends on organization and their marketing strategy.
If the customers are well defined then direct distribution channel can be lower cost alternative on the other hand if the customers are amorphous then it can be the highest cost alternative.
If the market is completely arranged then direct distribution channel can be lower cost alternative on the other hand if the market is unknown or unmanaged then it can be the highest cost alternative.
If the number of customers for the same product is large then direct distribution channel can be lower cost alternative but if the number of customers are less and they used to buy the products from different brands then it can be the highest cost alternative.