Identify the potential benefit, and challenges, for companies moving to direct online distribution channels. Your answer should explain how companies can balance expected benefits from onine direct sales with potential channel conflicts, and address how companies can best transition from traditional and intermediary sales model to direct channel.
Identify the potential benefit, and challenges, for companies moving to direct online distribution channels. Your answer should explain how companies can balance expected benefits from onine direct sales with potential channel conflicts, and address how companies can best transition from traditional and intermediary sales model to direct channel.
Explain how you could create customer value throughout the entire product/brand experience. Your answer should encompass all of the following concepts:
- Core, Actual & Expected, and Augmented Product
- iPACE Frame Work
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In this digital era it has become necessary for the companies to have a digital presence to sustain in the competitive market as there are a lot of benefits of reaching out the potential customers through online channels. Following are some of the potential advantages-
- Having online presence has the most prominent benefit of cost saving . Cost incurred in traditional methods such as brick mortar sales, personal selling, company physical outlets, intermediaries involves high cost of operations which reduces the profit margin thus selling direct through online channel will save cost and increase profit for the companies.
- Selling directly through online channel will help companies to develop a good repo in the minds of the customers, they will in turn help in building a long term healthy relationship with them.
- Removing intermediaries and selling through direct online channels has the most prominent benefit that company gets a direct link with the customers and influence them for future purchase.
- Selling through online channels such as website, social media pages is very beneficial as the company can reach to a a very larger audience as the compared to the traditional selling.
- Online channels increases the scope for innovation and creativity in selling techniques as there as various promotional and advertisement tools available such as digital marketing , content marketing , social media marketing, analytics, etc.
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