What are the advantages and disadvantages of direct versus indirect distribution channels? Discuss and give some examples of brands using one of the two channels or both.
Distribution channel plays an important role to have an effective, profitable business. There are two different types of distribution channels that are direct distribution and indirect distribution. Bothe have their advantages and disadvantages. Direct distribution involves personal selling, the internet, mail, telephones, etc. On the other hand, indirect distribution involves, retailers, distributors, agents broker, etc. advantages of direct distribution includes, personal CRM, effective relationship with customers, control of the brand image, low cost, easy to use, direct contact with the customers, etc. Disadvantages of direct distribution channel involve limited coverage, limited audience, fear of fraud, etc. on the other hand, indirect distribution channel advantages involves, wide distribution, a large range of customers, brand network, establishment of a channel, focused customer base and it helps to cover more geography (wordpress.com, 2013). The most common examples are McDonalds and Wal-Mart they are using direct distribution channel that is the internet and Wal-Mart is one of the biggest retailers that is using indirect distribution channel. Moreover, McDonald’s have an express version of restaurants at Wal-Mart stores (Shareef, Dwivedi, & Kumar, 2016).