Chapter 11, Problem 4QA

Summary Introduction

To determine: Factors important in determining whether a manufacturer should choose a direct or indirect channel and the reasons firms use hybrid marketing systems.

Introduction:

Direct Channel: When a manufacturer produces a product and sells that product directly to the customers under their own brand name with no middlemen involved. In services, like a barber provides its services directly to the customer and like a jewelry manufacturer sells its products directly to the customers.

Indirect Channel: When there is some intermediary or an organization involved between the manufacturer and the customers. The indirect channel is usually used to tap a large customer base and so that the manufacturer could mainly focus on producing the products but not on selling them. For example: farmers produce fruits and vegetables and sell them to wholesalers and wholesalers sell them to retailers and retailers then to customers.

Hybrid marketing is defined as an approach that combines both the traditional and the digital marketing. Instead of concentrating only on online platforms or in-person, this marketing strategy combines both the approaches to create a more effective outreach plan.