Analysis of Direct and Indirect Marketing Channels with Examples

This report provides a comprehensive overview of direct and indirect marketing channels, crucial components of marketing strategies. Direct marketing is defined as a method where organizations communicate directly with consumers through various media, such as websites, emails, and telemarketing, allowing manufacturers to control the distribution process and build direct relationships with customers. The report highlights examples like direct mail and event marketing. Conversely, indirect marketing relies on intermediaries, like wholesalers and retailers, to handle distribution, freeing manufacturers from logistical costs. The report discusses examples such as coupon mailing and the use of social media. The report highlights the advantages and disadvantages of both channels, emphasizing the importance of choosing the most effective approach based on business needs and market conditions. Ultimately, the report underscores the value of a combined strategy to enhance brand awareness and increase market share.

Running Head: DIRECT MARKETING CHANNEL AND INDIRECT MARKETING
CHANNEL AND THEIR EXAMPLES 1
Direct Marketing Channel and Indirect Marketing Channel and Their Examples
Name:
Institution Affiliation:

DIRECT MARKETING CHANNEL AND INDIRECT MARKETING CHANNEL AND
THEIR EXAMPLES 2
Introduction
A channel for marketing in most business setting refers to the chain of businesses or
intermediaries through which different goods or services passes until they reach the end user or
consumer. The channel is categorized into two distinct forms. These two forms comprise of
direct as well as indirect forms. Besides, distribution channels can comprise of the manufacturer,
retailers, warehouses, shipping centers, and even the internet (Bellin, 2016). Both direct, as well
as indirect distribution channels can phase several variations according to how well or service
gets to the end consumer. The channel of marketing remains to be individuals, organizations, and
operations essential to transfer the possession of various goods from stage of invention to the
time of utilization. Therefore, the principal target of this research paper is to discuss the channel
of direct marketing together with indirect marketing by giving examples in each case.
Direct marketing channel
Channel of direct marketing has various definitions around business community. It
mostly refers to the form of advertising were organization concentrate on communicating
directly to consumers through a variety of media (Hara, 2019). The media in use normally
comprise of websites, email, phone texting, newspaper, online adverts, outdoor, advertising,
targeted television channels, and outdoor advertising, among other techniques. According to
Chang & Zhang (2016), direct marketing refers to the direct to consumer approach where
manufacture controls every aspect of distribution. It allows the targeted as well as esteemed
customers of a given organization to buy different goods directly from the manufacturer. A

DIRECT MARKETING CHANNEL AND INDIRECT MARKETING CHANNEL AND
THEIR EXAMPLES 3
different organization that uses such kind of marketing channel in most instances requires its
own logistic teams together with transport vehicles.
Direct marketing channels tend to be more expensive to set up at the beginning of
business operations. It can sometimes need a management team to have a significant capital
investment (Li & Liu, 2014). It needs the setting up of different logistic systems, trucks,
warehouses, as well as staff that deal with delivery services. However, once the above elements
are set in place, the direct marketing channel is likely to be shorter and less costly than the
indirect channel of marketing. Bellin (2016) noted in their study that direct selling through such
channel can be tough to manage on a large scale. However, the channel always allows different
manufacturers to possess a better connection to its targeted base of consumers. Nevertheless,
direct channels for marketing aimed at the particular audience or profile of consumers to increase
the direct reply to the yields or marketed service as well as to compute the response. In most
instances, channel of direct marketing can be invasive and irritating when business operators fail
to use it in comprehensive marketing approaches. Chang & Zhang (2016) stated that in direct
marketing, by efficient control of all aspects of the distribution channel around the business
setting, the manufacturer has a lot of control over how different goods are delivered in markets
or to consumers. Therefore, such goods tend to have more control over cutting out inefficiencies,
adding new services, alongside setting prices. Direct marketing channels that occur when the
product or service leaves the producers and goes directly to the no agent or intermediaries
involved in the operation (Nicolau, 2013). Such situations occur more often than not with the
sales of services. For instance, both car wash together with barer, utilizes direct marketing
channel because the customer receives the service directly from the producer. It also happens

DIRECT MARKETING CHANNEL AND INDIRECT MARKETING CHANNEL AND
THEIR EXAMPLES 4
with organizations that engage in operations of selling different goods that are tangible (Hara,
2019). Such kind of goods can comprise of jewelry manufacturer that sells its products directly
to the client.
Examples of channels of direct marketing
Some of the known examples of direct marketing channels around the global business
community comprise of direct mail that is the most recognized technique and approach of
engagement between customers and management of an organization. Event marketing and
sending the marketing message is another form of direct marketing channels (Chang & Zhang,
2016). The use of telemarketing is another example of a direct marketing channel. It involves the
idea of one to one contact with the contact is made through a phone call.
Indirect marketing channel
As divergent to a channel of direct promotion, the method of indirect advertising and its
policy concentrates on channels where there is no direct interaction with clients by organizations.
The strategy is always utilized to retain clients, enhance the reliability of customers, as well as
create more business. Chung, Chatterjee, & Sengupta (2014) stated that indirect marketing
channel relies greatly on intermediaries to do all or most of distribution functions, otherwise
referred to as the wholesale distribution. The most challenging section of indirect marketing
channel is that one party in the process of marketing has to be entrusted with the products of
manufacture as well as the interaction of the client (Hara, 2019). However, the most successful
logistics organizations are experts at offering receivables in the manner that most manufacturers
cannot be during their operations.

DIRECT MARKETING CHANNEL AND INDIRECT MARKETING CHANNEL AND
THEIR EXAMPLES 5
Indirect marketing channels also free the manufacturer from any costs of startups. With
the appropriate relationship, marketing processes are much easy to manage than channels that
deal with direct marketing. Chang & Zhang (2016) argue that indirect marketing channels add
layers of vendors, charges, as well as bureaucracy. The idea of adding an extra layer in
operations can increase the costs to the consumer, slow down processes of delivery, and take
control out of the hands of manufacturers. Besides, indirect marketing channels could bring in
advance levels of expertise in business operations. It is essential to note that manufacturing
corporations are not a shipping company. Hence, indirect marketing channel does not involve the
process of sifting goods from one section to another (Dimitrova, Rosenbloom, & Larsen Andras,
2015). The lack of communication in this channel of marketing to consumers by the organization
is treated to be the prospect stage of recognition of brand and brand awareness around the
business setting. Hence, Bellin (2016) simplified the term channel of indirect promotion to be a
series of mediators through which the commodities are transported to be made readily accessible
for procure by targeted clients. Channels of indirect marketing enable different organizations to
concentrate on their fundamental business operations while outsourcing distribution to the expert
(Takata, 2018). However, the major disadvantage of this channel of marketing is in the high cost
needed to apply the strategy. The high costs in operations through this channel can be acquired
for advertising the product. The high expense can also be incurred during the process of hiring
appropriate individuals with the relevant expertise as well as capacities for offering the right
marketing content (Hara, 2019). At the end of marketing processes, these high cots might fail to
make the probable number of clients in the prospect operations of a given company.
Example of channel of indirect marketing

DIRECT MARKETING CHANNEL AND INDIRECT MARKETING CHANNEL AND
THEIR EXAMPLES 6
The fundamental cases of channels of indirect marketing comprise of coupon mailing,
trade shows, blogging by different business operators, and public relations. The use of social
media for another key example of indirect marketing channels that allow the consumer to know
what is in store for a given organization (Chung, Chatterjee, & Sengupta, 2014). According to
Lund & Marinova, (2014), other examples of indirect marketing channels include workshops and
use of national television and radio advertisements to enlighten various consumers of the current
stock within an organization. All these examples help in enlightening the targeted customer to
have the basics knowledge of the goods or services that are on offer within the organization.
In conclusion, the most successful organization implements a combination of direct as
well as indirect marketing tactics. The focus on these two channels is efficient in developing
brand awareness as well as increasing their share around the global business community.

DIRECT MARKETING CHANNEL AND INDIRECT MARKETING CHANNEL AND
THEIR EXAMPLES 7
References
Bellin, H. (2016). Branding and Marketing Channel Strategies: Some Effects on Channel
Partners. Journal Of Marketing Channels, 23(4), 255-257. doi:
10.1080/1046669x.2016.1224311
Bellin, H. (2016). Branding and Marketing Channel Strategies: Some Effects on Channel
Partners. Journal Of Marketing Channels, 23(4), 255-257. doi:
10.1080/1046669x.2016.1224311
Chang, C., & Zhang, J. (2016). The Effects of Channel Experiences and Direct Marketing on
Customer Retention in Multichannel Settings. Journal Of Interactive Marketing, 36, 77-
90. doi: 10.1016/j.intmar.2016.05.002
Chung, C., Chatterjee, S., & Sengupta, S. (2014). Manufacturers’ reliance on channel
intermediaries: Value drivers in the presence of a direct web channel. Industrial
Marketing Management, 41(1), 40-53. doi: 10.1016/j.indmarman.2014.11.010
Dimitrova, B., Rosenbloom, B., & Larsen Andras, T. (2015). Do Retail Foreign Direct
Investment Restrictions Affect Retail Channel Structure?. Journal Of Marketing
Channels, 22(4), 265-278. doi: 10.1080/1046669x.2015.1113488
Hara, Y. (2019). Integrated marketing channel relationships: integration dimensions and channel
performance. Journal Of Business & Industrial Marketing. doi: 10.1108/jbim-01-2018-
0050

DIRECT MARKETING CHANNEL AND INDIRECT MARKETING CHANNEL AND
THEIR EXAMPLES 8
Li, S., & Liu, A. (2014). Pricing Strategies in Dual-Channel Supply Chain with Retailer Direct
Marketing. Advanced Materials Research, 933, 902-906. doi:
10.4028/www.scientific.net/amr.933.902
Lund, D., & Marinova, D. (2014). Managing Revenue across Retail Channels: The Interplay of
Service Performance and Direct Marketing. Journal Of Marketing, 78(5), 99-118. doi:
10.1509/jm.13.0220
Nicolau, J. (2013). Direct versus indirect channels. European Journal Of Marketing, 47(1/2),
260-278. doi: 10.1108/03090561311285547
Takata, H. (2018). Transaction costs and capability factors in dual or indirect distribution
channel selection: An empirical analysis of Japanese manufacturers. Industrial Marketing
Management. doi: 10.1016/j.indmarman.2018.11.003