Question

Mention four cases where direct selling is more suitable than indirect channels of distribution.

Answer 1

Four cases where direct selling is more suitable than indirect channels:

1. Industrial and heavy products: Direct selling is best suited for products such as industrial machinery, power transformers, and heavy equipment because buyers are limited and require expert demonstration, installation, and after-sales support.
2. Perishable goods: Producers of perishable goods such as fruits, vegetables, and bakery items want to sell directly to local clients to avoid deterioration during transit through middlemen.
3. Custom-made products: When products are created to precise customer specifications (for example, fitted textiles or specialised electronics), direct contact between maker and consumer is required.
4. Limited or concentrated markets: When there are few prospective buyers or the market is geographically concentrated in a small area, direct selling is simple and cost-effective.