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Distribution Channels - Telemarketing - Essay Example

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The paper "Distribution Channels - Telemarketing" states that the article is highly relevant from point of view of Distribution Strategies because with changing nature of businesses, the proliferation of technology and shorter product cycles, the distribution strategies must also evolve. …
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Distribution Channels - Telemarketing
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Extract of sample "Distribution Channels - Telemarketing"

The article discusses the significance of telemarketing in boosting product sales. Telemarketing can be used to target local, national and global customers each of which requires different costs, skill-sets and strategies. Internet and e-commerce have enabled a business to reach global customers through customer-friendly portals. Agents and brokers can be very helpful in the international expansion of a company. However, they do not take ownership of the product and hence marketing activities are to be taken care of by the firm itself. Some companies may be selling only to wholesalers who may sell it further through several means. However, wholesalers are incapable of marketing the products and also eat a big chunk of the profit. In such a scenario, telemarketing plays an important role in a company.
The relevance of the article
A large number of customers are getting used to the Internet and e-commerce. Also, the use of wholesalers for distribution must be though over rigorously. While they are a vital link in the distribution chain, they also act as a cost centre for a company.
Questions/Comments
1. Does it make sense for small organizations to use external agents for telemarketing?
Economically, it may not make sense for small organizations to use external agents or brokers for this purpose. However, in order to venture into foreign markets, they may be required in small numbers.
2. How can wholesalers be bypassed in the distribution chain?
This can be done by the use of different distribution strategies such as cash and carry format, franchisee model and online selling. Read More
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