3. (TCOs E, I) What is a direct marketing channel? Please provide an example. (Points : 5)
Direct marketing is a channel free approach to distribution and/or marketing
communications. So a company may have a strategy of dealing with its customers
'directly,' for example computer manufacturer Dell. There are no channel
intermediaries i.e. distributors, retailers or wholesalers. Therefore - 'direct' in the
sense that the deal is done directly between the manufacturer and the customer.
4. (TCOs E, I) What are the differences between exclusive distribution, selective distribution,
choose one of these strategies over another? (Points : 5)
Exclusive distribution is distribution of a product through one wholesaler or retailer in a spe
provides a good example of exclusive distribution. Though marketers may sacrifice some ma
often develop and maintain an image of quality and prestige for the product. In addition, excl
firm deals with a smaller number of accounts. In exclusive distribution, producers and retaile
advertising and promotion, inventory carried by the retailers, and prices. Exclusive distributio
priced, that have considerable service requirements, and when there are a limited number o
distribution allows wholesalers and retailers to recoup the costs associated with long selling
cases, extensive after-sale service. Specialty goods are usually good candidates for this kind