Other distribution channels

Direct selling

Direct selling

Some producers market their products directly to consumers. Direct selling can take a number of forms.

Types of direct selling

• Shopping party

• Telephone selling

• Mail order catalogue

• Direct mail

• Door-to-door selling

• Direct response adverts

• The internet

Shopping party

Representatives organise parties and invite people to enjoy themselves and buy products such as jewellery, cosmetics and lingerie

Telephone selling

Producers contact customers directly and try to sell over the telephone.

Mail order catalogue

Catalogues are distributed to customers who may buy the products listed - sometimes on credit (they get the product now and pay for it later).

Direct mail

Producers send promotions direct to customers inviting them to buy products. Banks may use this method to sell loans and insurance.

Door-to-door selling

Sales people knock on customers' doors inviting them to buy products.

Direct response adverts

Adverts are placed in newspapers, magazines or on television inviting people to buy products.

The internet

Products are sold online from manufacturers' websites.

Wholesaler

• Wholesalers usually buy from manufacturers and sell to retailers.

• Some wholesalers are called cash and carry stores. This is because customers can come to the store, buy goods, pay cash and take goods away with them.

• Wholesalers may break bulk, repack goods, redistribute smaller quantities, store goods and provide delivery services.

• A wholesaler stocks goods produced by many manufacturers. Therefore retailers get to select from a wide range of products.

 

Agent or Broker

• The role of an agent or broker is to link buyers and sellers.

• They are used in a variety of markets.

• For example, travel agents sell holidays and flights for holiday companies, airlines and tour operators. Estate agents sell properties on behalf of vendors.

• Agents are also used to sell insurance, mortgages and other financial products.