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What is the difference between a direct and indirect distribution channel?

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Answer:

Direct Intermediaries-
* companies can sell directly to consumers or retailers without intermediaries. it also includes reaching Institutional buyers.
*Selling of product & services via Internet.
*If product is technically complex this system can be preferred.
* Ex. Banking services, Health services, credit cards, petrol/diesel (companies own outlet), education etc.

Indirect intermediaries-
*Goods may move through a set of intermediaries. Most FMCG companies follow this.
*Intermediaries know the market very well when compared to manufacturers.
*Ex. consumer durables and pharmaceutical products, mobile phones etc.

First answer by ID0469468834. Last edit by ID0469468834. Question popularity: 11 [recommend question].

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