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
What is Price Skimming? Price skimming is a pricing strategy where a company initially sets the highest possible price that early customers are willing to pay for a new product. Over time, as demand from the initial customer segment is met and competition enters the market, the company gradually reduces the price to attract more … Read more
What is Product Life Cycle Pricing? Product life cycle pricing is how companies set prices for products as they grow and change. Imagine a product’s life in different stages: baby, kid, teenager, and grown-up. Each stage needs different care. Same with products. First, there’s the baby stage (introduction stage), where the product is new and … Read more