Marketing - What is Direct Distribution

The video discusses the concept of direct distribution, where products are sold directly from producers to consumers without intermediaries. This approach allows producers to have more control over pricing and promotion, and to retain more profit margins. However, it may also lead to reduced product availability and convenience for consumers. The video emphasizes the need to balance the pros and cons of direct distribution to maximize value delivery.

What is a key characteristic of direct distribution?

• Relies on retailers for promotion

• Requires a wholesaler

• Involves multiple intermediaries

• Direct sale from producer to consumer

How does direct distribution benefit producers in terms of pricing?

• Pricing is fixed by wholesalers

• Pricing is determined by retailers

• Producers have less control over pricing

• Producers have more control over pricing

What is one financial advantage of using direct distribution?

• Reduced control over product pricing

• Increased profit margins by eliminating middlemen

• Lower profit margins

• Higher costs due to intermediaries

What is a potential drawback of direct distribution for consumers?

• Higher product prices

• Increased availability of products

• Reduced convenience in accessing products

• More interaction with intermediaries

Why is it important to weigh the pros and cons of direct distribution?

• To reduce product availability

• To increase the number of intermediaries

• To ensure maximum value delivery

• To decrease control over pricing