Cost Distribution Methods
There are so many different ways to market and distribute products to customers these days; television commercials, billboards, and the internet to name a few. The internet has made many markets available to people thousands of miles away, and it makes it easier to buy things using your credit card right over the telephone or through a web-site paying system. Then there are newspapers and magazines. Magazine catalogs offer a way to shop without leaving your home as well when you pay by check or credit card. People love to spend money and the easier it is to spend money the more willing they are to do it. So which distribution method is best? The direct distribution system in one method and has several subsystems. One distinction between direct systems and indirect systems for example, is that in direct systems the marketer does the research themselves. But in indirect systems the marketer has help from others.
Direct marketing systems are set up so that the customers place orders directly. Customers are not necessarily helped by a salesperson. Some examples are calling a 1-800 number or calling a number in a magazine catalog. E-Bay is an example of assisted marketing systems which falls under the direct distribution system. Other forms of direct distribution are direct retail sales. Businesses that fall into this category are ones like Starbucks or McDonalds. Another type of direct system is personal selling systems. “The key to this direct distribution system is that a person whose main responsibility involves creating and managing sales (e.g., salesperson) is involved in the distribution process, generally by persuading the buyer to place an order.” (http://www.knowthis.com/tutorials/principles-of-marketing/distribution-decisions/distribution-systems-direct.htm - Principles of marketing – Knowthis.com)
Indirect distribution systems sell through a middle-man. The marketers and researchers use help in the form of supermarkets or other retailers to sell their
Direct marketing systems are set up so that the customers place orders directly. Customers are not necessarily helped by a salesperson. Some examples are calling a 1-800 number or calling a number in a magazine catalog. E-Bay is an example of assisted marketing systems which falls under the direct distribution system. Other forms of direct distribution are direct retail sales. Businesses that fall into this category are ones like Starbucks or McDonalds. Another type of direct system is personal selling systems. “The key to this direct distribution system is that a person whose main responsibility involves creating and managing sales (e.g., salesperson) is involved in the distribution process, generally by persuading the buyer to place an order.” (http://www.knowthis.com/tutorials/principles-of-marketing/distribution-decisions/distribution-systems-direct.htm - Principles of marketing – Knowthis.com)
Indirect distribution systems sell through a middle-man. The marketers and researchers use help in the form of supermarkets or other retailers to sell their
References: 1. Principles of Marketing - KnowThis.com - http://www.knowthis.com/tutorials/principles-of-marketing/distribution-decisions/distribution-systems-indirect.htm 2. Friedman, J. (2007, May 12) Theater owners blast Comcast movie plan. Retrieved February 19, 2008, from Proquest Database. 3. Park, A. (2004, May 10) A 21st Century Mogul? Retrieved February 19, 2008, from Proquest Database. 4. Internet Movie Data Base. (2007). Biography of Todd Wagner. Retrieved February 19, 2008 from Internet Movie Data Base. 5. 2929 Entertainment (2007). Retrieved February 19, 2008 from www.2929 Entertainment. 6. Sells, M. (2007, June 1). Judgment Day for Movie Theaters, Moviemaker. Retrieved February 16, 2008.