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What is direct selling ? Mention four circumstances where direct distribution is more suitable than indirect channels of distribution.

Answer»

Direct selling is the action of marketing and selling products directly to the consumer in a non-retail environment. Instead, sales occur at home, work or other non-store location. This system often eliminates several of the middlemen involved in product distribution, such as the regional distribution center and wholesaler. Instead, products go from manufacturer to the direct sales company, to the distributor or rep, and to the consumer. Four circumstances when direct selling is more suitable then indirect selling are.

  • When, to enter new market with relatively low cost, especially providing unique products or services and does not require high capital investment.  
  • When organization wants to gaining the initial interest and attention of prospective customer – personal touch.
  • When organization allows avoid additional intermediaries in distribution.
  • Requires no specially educated workers


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