Study of Mission Statement as a Marketing Strategy:

An Analysis of Amazon.com and Wal-Mart Mission Statement

BUS 5112 - Marketing Management

Distribution and Channel Management

Written Assignment Unit 7

Dr. Frank Billingsley
Professor

Instructions for submission

A direct marketing channel typically involves a producer and a consumer. In contrast, an

indirect channel is a channel that includes one or more intermediaries (distributor, broker, or
agent). Companies usually employ multiple channels to reach more customers and improve
sales. Some organizations may improve sales is by forging strategic channel unions while
other firms may seek methods to trim intermediaries within the channel. This process is
known as disintermediation. Some of the channels through which companies make efforts to
gain entrance into foreign markets include exporting, direct foreign investment, franchising,
joint ventures, and licensing. With this in mind, write a short paper which provides answers
to the questions below:

• Are direct marketing channels possible for some products and not others? Why or
why not?
• Explain the value middlemen can add to product sales and marketing success.
• Think of the products you currently use. Are there any of them you would prefer to
buy through different marketing channels? Why?

Submit a 2-3-page paper, (excluding the title page and reference page) double-spaced in
Times New Roman font which is no greater than 12 points in size. Be sure to cite any sources
in APA Format.

Papers will be peer-assessed using the Unit 7 Written Assignment rubric.

Please be reminded that there is NO WORD COUNT LIMIT for ASSIGNMENT.
Please be reminded THE REFERENCE NEEDS TO BE IN A DIFFERENT PAGE, so
please check accordingly before deducting points.
 Introduction

Principles of Marketing (2010) states that the medium through which a corporation sells

its products is as significant as the products themselves. The direct channel is the shortest

marketing route and consists of only a manufacturer and a consumer, whereas the indirect

channel includes one or more intermediaries such as a wholesaler, distributor, broker, or agent.

Intermediaries have the same effect on product sales as producers. Therefore, taking out

intermediaries is never a good idea. Big companies like Nippon Telecom may not require

intermediaries, but if a small shop owner eliminates intermediaries, this enterprise will need to

perform middleman tasks such as keeping a considerable quantity of expensive products.

Direct Marketing Channels

Direct or indirect marketing channels can market a product. Direct marketing is a

business owner approaching a customer and seeking to sell directly to them. In-person sales

calls, email advertisements, direct mail brochures, promoted or sponsored adverts on social

media, and YouTube advertisements are all instances of direct marketing.

This sort of marketing encourages customers to look at what they have to offer and then

make a purchase. On the other hand, indirect marketing is like a new business owner who is

just getting started. It is a method for making customers aware of a product before asking them

to buy it and then cultivating customer loyalty. Search engine optimization, news stories,

sponsorships, social media influencers, referrals, and word of mouth are all forms of indirect

marketing.

A direct marketing method may be appropriate and effective for one company but not

for another. Several factors influence whether it is possible to market directly. The proximity

of the organization to the market is one of the aspects that affect direct marketing. If the
manufacturing company is far from the market, it will rely on an intermediary service to

transport its goods, such as a courier service. It is unable to deliver its goods directly to the

buyer. Another consideration is the company's size. If it is a major corporation, it will not sell

its items directly to the customer. Pringles crisps, for example, will be unable to promote

directly to customers. On the other hand, the direct marketing may be more effective than

indirect marketing for some organizations, such as handymen, education, or training facilities.

Middlemen’s Added Value to Product Sales and Marketing Success

On the other hand, Intermediaries rarely produce anything and instead focus on selling

or transferring goods between two parties. A middleman assists with logistics. That is, they

ensure that things are distributed efficiently and effectively and sorting and storing products

(Stewart, 2019). An intermediary knows the consumer market better than a consumer, which

is why they can improve a buyer-seller relationship. They provide consumers with feedback,

and as a result, manufacturers can improve their products. Intermediaries may also split the

cost of a product's promotion and provide consumers with a simple payment option.

Producers who are unable to keep extensive inventories may be able to use

intermediaries' warehousing services. It saves the sellers money and time by eliminating the

need to store large quantities of merchandise. Consumers can also acquire the product at

convenient locations, thanks to intermediaries. A mediator can sell a product in bulk in a less

or lower quantity.

If intermediaries are increasing consumers and covering the costs of intermediaries,

brokers will remain necessary in marketing. Middlemen are individuals that assist a corporation

in locating clients or closing sales with them (Kotler, 1988). The intermediaries can bring much

value to the success of a product's sales and marketing. They operate as a link between

manufacturers and customers, assisting in the creation of a supply-demand equilibrium. As a

result, products are available at the right moment to meet the needs of clients. Intermediaries

frequently purchase things in bulk and resell them in smaller amounts to other suppliers. The

activity of brokers like this aids the company in distributing its goods equitably throughout the

market. They also assist in bringing things closer to the customer. Intermediaries enable the

company to sell its goods in locations that are far away from the factory. It would be not easy

to get items from manufacturers to consumers without the use of mediators.

Reflection: Inclination to Buy Through Different Marketing Channels

After learning the differences between direct marketing, indirect marketing, and

employing middlemen, the buyer wants to purchase a Dyson Vacuum through an indirect

channel rather than directly from the seller. The reason for this is the ability to shop around for

other sorts and better costs. In addition, going to multiple places will allow consumers to

interact with salespeople and better understand the product before purchasing it. Intermediaries

may also offer product insurance and a financing payment plan.

Conclusion

The market sector, seller, buyer, product, and price involved determine whether direct

or indirect marketing, middleman or no middleman, is used. Choosing the perfect channel can

be difficult; nevertheless, it can benefit both customers and manufacturers when done correctly.

The key to success in direct or indirect marketing is understanding who the consumers

are, why they like to buy from the business, and how the organization can meet their needs.

Direct and indirect marketing methods can both be successful if they are well planned and

targeted. Some marketing professionals believe that every client interaction is a type of

marketing—careful monitoring of customer feedback and ensuring every effort to keep

customers happy should be the number one priority of every organization.

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