What is one-tier direct sales

distribution

distribution
(synonymous with paragraph). Distribution of goods, logistics, management of the sales force organization or maintaining relationships between manufacturers and retailers.

paragraph

Sales channel

[s.a. Distribution policy] The distribution decision is an essential fact of the distribution policy. A basic distinction must be made between direct sales and indirect sales.

Direct sales (direct sales) characterize a special sales channel policy of the manufacturers, which is characterized by the fact that the trade (wholesale and retail) is not involved. In the case of direct sales, the manufacturer takes over all or the major part of the functions that arise when selling the services to the end buyer, either himself or through sales organs that are economically dependent on him. It is essential here that the manufacturer can manage and control the use of the marketing instruments right up to the end customer.

Direct sales are mostly carried out through the use of field staff. Personal sales by sales representatives represent a form of direct marketing. Direct sales are also possible when you use your own sales outlets (factory outlet) or by mail order. Modern information and communication technologies, especially in the form of e-commeree, open up new possibilities for direct sales (cf. Zentes / Swoboda, 1999b, p. 40ff.).

The advantages of direct sales, which are particularly important in the capital goods sector, lie in the possibility of directly influencing the end customer and the retail margin remaining with the manufacturer. The disadvantages are higher costs and a possibly lower degree of distribution.

Indirect sales exist if, through the links in the sales chain, through the interposition of legally and economically independent sales bodies, e.g. trading companies, the management and control options with regard to the use of marketing instruments by the end customer are largely lost and the marketing-political tasks in the end customer market are predominantly performed by sales intermediaries. For the manufacturing company, part of the market proximity and the associated information potential as well as the control and monitoring options are lost.

The advantage of international companies with indirect sales is that a company with market experience can be used that is familiar with the problem structures and buying habits of the respective national market and, if necessary, also has a corresponding service network, without the costs and risks of an adequate direct sales structure having to spend.

The decision between direct sales and indirect sales can be viewed in an international context in a close relationship to the export decision (export).

Further decisions in the context of sales concern the number of intermediate stages (single-stage and multi-stage sales) as well as the definition of single-track and multi-track sales channels (distribution channels; Mulü-Channd-Distribution).

Sales ..., bank sales ..., sales ...



Sale, sale of banking services (products) or financial services.

—Distribution policy

Sales is an important part of marketing related to the sales markets. The term thus goes beyond the pure sales function and can be referred to as customer management with the aim of selling (functional view). On the other hand, sales is understood to be the organizational unit of a company that coordinates and implements sales policy goals, strategies and measures. The sales department thus forms the interface to the customer (institutional view). See also sales policy and sales control, each with references.

Literature: Ahlen D .; Evanschitzky, H .; Hesse, J .; Salfeld, A. [Ed.] (2004): Excellence in Brand Management and Sales, Wiesbaden; Hesse, J. (2004): Success research in sales, Wiesbaden.

Sales, field service, distribution channel policy

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