Thursday, March 28, 2013

In response to Kaley Deboer

Do you feel one channel of distribution could be more beneficial to a company, or do you feel it will always vary depending on the company, product, or service?

Although all of the channels of distribution could be beneficial to a company because they offer different benefits, I believe that the one that could be most beneficial to a company is a direct channel - where the product goes directly from the producer to the consumer.  

I believe that it is beneficial because it could cut costs for the company.  For example, instead of the price getting jacked up due to transportation costs, etc. a company could sell their product at a lower price if it went directly from the producer to the consumer.  The could also create less inventory because they could create products only when they are ordered by the consumer.

The other channels of distribution are also important, have each have their own benefits, but I believe that because of the cost cutting a direct channel could be the most beneficial to a company.  Do you agree with this, or do you believe that another channel is more effective?

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