FUNDAMENTEL OF DIRECT SELLING | CH-1 NOTES
1. Introduction to Disintermediation : Traditional Marketing Distribution System : Involves multiple middlemen: Manufacturer, Carrying and Forwarding Agents, Super-stockists, Distributors, Dealers, Wholesalers, Retailers, and Consumers. Middlemen play a crucial role in ensuring the product reaches the consumer. Technological advancements have led to a decline in the reliance on these intermediaries. Disintermediation : Refers to eliminating or reducing the number of intermediaries in the supply chain. This shift has been driven by advancements in information technology, distribution channels, and logistics. 2. Pros and Cons of Middlemen Distribution System : 2.1 Pros : Time Utility : Products are available when the consumer needs them. Place Utility : Products are accessible at local retail stores. Assortment : Wide variety of products available. Credit Facilities : Some middlemen offer credit to consumers. Employment Opportunities : Middlemen provide jobs in the distribution sys...