Mixing Direct and Indirect Marketing

[Reyed Mia (Apprentice, DIU)]

Mixing Direct and Indirect Marketing

A successful marketing strategy need not go entirely one way or the other between direct or indirect channels. There are in fact many ways to use both main options for a profitable marketing mix.

Direct marketing presents an offer to buy or to learn more about what's for sale. The purpose is to get the customer to take action to buy the product by dialing the phone, using a promotional code, or attending a presentation.

Indirect marketing makes no attempt at immediate sales but instead focuses on building relationships of trust by finding out what consumers want and helping them find it. Consumers search the Internet for answers to their questions or solutions to their problems. Indirect marketing offers them knowledge and advice in blogs, social media, newsletters, and videos.

Indirect marketing aims at consumers with questions needing answers. Indirect marketing builds brand recognition by suggesting how to solve problems with products and services that can help

For startup businesses, time is of the essence. They need to begin marketing indirectly to customers as soon as possible. A good place to start is online through blogs and social media to build interest and brand recognition. If their marketing succeeds in raising consumer demand for their products and services, they then need to develop distribution channels.

Distribution Channels

Products and services must find ways to reach consumers. Distribution channels transfer products and services profitably to retail sales outlets or directly to customer homes.

Distribution channels organized and managed by the businesses they serve are direct distribution channels. Intermediary middlemen operate indirect distribution channels (example here). Firms that use direct distribution require their own logistics teams and transport vehicles. Those with indirect distribution channels must set up relationships with third-party distributors.

Direct Distribution Channels

Direct channels tend to be expensive to establish, sometimes demanding substantial capital investment in warehouses, logistics, transport vehicles, and driving staff. After its components are in place, however, a direct channel is likely to be more economical and efficient in operation than an indirect channel. Direct selling, though in some cases difficult to manage on a large scale, often gives manufacturers better connections to consumer bases than do indirect channels.

Indirect Distribution Channels

The most challenging aspect of indirect distribution channels is the necessity to entrust third-party middlemen with product handling and customer interaction. The most successful of such intermediary logistics agents, however, are adept at product deliveries in ways that most manufacturers are not. Indirect channels also free manufacturers from delivery system startup costs. In harmonious relationships, they are much simpler and more cost-effective to manage than are direct distribution channels.

http://www.feedster.com/blog/direct-and-indirect-marketing-methods-and-distribution-channels/