Causes of Channel Conflict Channel conflict refers to any disagreement between two or more channel partners. Numerous reasons can cause this disagreement. Here are the 12 major causes of channel conflict in marketing: Competing Interests When partners have diverging priorities, conflicts often arise. Imagine a scenario where a manufacturer seeks to expand its online sales … Read more
What is Reverse Distribution? Reverse distribution channels involve the process of moving goods from the consumer back to the manufacturer or retailer. It’s a path for handling returns, exchanges, recalls, or recycling products. Unlike the typical distribution channel where products move from manufacturer to consumer, in reverse distribution, goods flow in the opposite direction, enabling … Read more
Direct Vs. Indirect Distribution Channel Direct and indirect distribution channels are the two distribution channels that are mostly used in the business. Direct distribution channel, where manufacturers directly sell their products to end consumers. On the other hand, an indirect distribution channel refers to the distribution strategy in which the product reaches final consumers through … Read more
What is Indirect Distribution? Indirect distribution is a method where a manufacturer relies on intermediaries – such as wholesalers, distributors, or retailers – to get its products into the hands of consumers. Instead of dealing directly with customers, the manufacturer delegates aspects of the sales process to these intermediaries. These middlemen take care of tasks … Read more
What is Direct Distribution? Direct distribution is a strategy that involves manufacturers delivering products straight to consumers without intermediaries like wholesalers or distributors. Companies independently handle production and sales, which can boost revenue and cut marketing costs since promotion occurs primarily through their own websites and in-store materials. This distribution method directly connects producers to … Read more
Penetration Pricing Vs. Price Skimming Penetration pricing and price skimming are two pricing strategies that are mostly used in the introduction stage of the product life cycle. Penetration pricing is a pricing strategy in which at the initial stage the price of the product is set low. On the other hand, in price skimming initially … Read more
What is Penetration Pricing? Penetration pricing is a pricing approach where a new product or service enters the market at a deliberately low initial price. The aim is to instantly capture attention, entice a broad customer base, and outshine competitors. This pricing strategy revolves around the belief that customers will be drawn to the new … Read more