From idea to business idea
How the market supports my business idea
Getting ready for the market
Financing - Profit analysis
Do I need other skills?
Tools & References
Direct distribution - strengths and weaknesses
This can be done through personal selling, the internet, telephone or mail.
In the case of personal selling, there is a lot of conveniences afforded to the customer including personal demonstration, home delivery, and satisfaction guarantees.
The cost of a direct selling channel is low and can be easily afforded by an individual starting a business. Personal selling is a wonderful way to establish a strong relationship with the customer. The return in investment in personal selling is also higher, and the company can exert control over the brand image and positioning of the company.
But if the organization is bigger, personal selling costs can be prohibitive. This distribution channel is also limited in its reach and creates too much dependence on people who may leave the organization and take their clients with them.
The Internet provides a low-cost channel to target a wide customer base. It also provides convenience to customers in the form of instant access, ease of use and personalization. It is also a wonderful source of information for the customers available 24 hours the 7 days of the week and gives them the chance to establish two-way communication with the company by feedback and sharing preferences.
But the Internet is an impersonal tool that does not allow the customer and the company to establish human contact. There is also the possibility of annoying customers by sending them too much spam. It also limits how the customer can directly interact with the product and requires an infrastructural investment. There is also a lack of after-sales service opportunities.
The telephone is an inexpensive and efficient way to establish direct contact with the customer. It is also a good way to establish a relationship, create leads and reach customers in remote areas. But the telephone may seem intrusive and annoying to customers.
Mail is inexpensive and can reach a large audience. It is also easily customizable to different customer segments and allows for easy alteration. It is a wonderful way to create a brand image, communicate innovations or new products and foster good will. But there are challenges with this medium such as the possibility that customers consider it junk mail or choose to never peruse its contents. This medium in general has low return on investment.
In the case of personal selling, there is a lot of conveniences afforded to the customer including personal demonstration, home delivery, and satisfaction guarantees.
The cost of a direct selling channel is low and can be easily afforded by an individual starting a business. Personal selling is a wonderful way to establish a strong relationship with the customer. The return in investment in personal selling is also higher, and the company can exert control over the brand image and positioning of the company.
But if the organization is bigger, personal selling costs can be prohibitive. This distribution channel is also limited in its reach and creates too much dependence on people who may leave the organization and take their clients with them.
The Internet provides a low-cost channel to target a wide customer base. It also provides convenience to customers in the form of instant access, ease of use and personalization. It is also a wonderful source of information for the customers available 24 hours the 7 days of the week and gives them the chance to establish two-way communication with the company by feedback and sharing preferences.
But the Internet is an impersonal tool that does not allow the customer and the company to establish human contact. There is also the possibility of annoying customers by sending them too much spam. It also limits how the customer can directly interact with the product and requires an infrastructural investment. There is also a lack of after-sales service opportunities.
The telephone is an inexpensive and efficient way to establish direct contact with the customer. It is also a good way to establish a relationship, create leads and reach customers in remote areas. But the telephone may seem intrusive and annoying to customers.
Mail is inexpensive and can reach a large audience. It is also easily customizable to different customer segments and allows for easy alteration. It is a wonderful way to create a brand image, communicate innovations or new products and foster good will. But there are challenges with this medium such as the possibility that customers consider it junk mail or choose to never peruse its contents. This medium in general has low return on investment.
