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Why do producer prefer direct distribution? Select one: A
Why do producer prefer direct distribution?
Select one:
A. because business products always use direct distribution
B. because it has more business transactions
C. because customers are usually widely dispersed across geographic areas
D. because they can handle orders that are smaller in size
E. because they want to maintain control of the marketing mix
Expert Solution
The answer is (E). To maintain control of the marketing mix.
A producer that wish to have control of the marketing mix of his products will consider using a direct distribution channel. Also, the producer will enjoy better profits then when using intermediaries who will require to be offered the goods at a discounted rate. Below are examples of direct distribution channels;
- Door -to door sales. The producer may hire sales agents to move from one place to another selling their products direct to the final consumer.
- Chain stores. Where the producer opens retail shops in different locations to sell the consumers directly. After manufacturing, the final products are transported to these chain stores and stocked there.
- Online sales. It has become popular due to its many advantages such as reaching out to a broader customer base. The producer will require to have an online store where he displays the products to the customers who will make direct orders.
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