Impact of Direct/Online Selling on Traditional Channels

3291 WordsJul 13, 200614 Pages
ABSTRACT Today, we are living in the age of information technology. Internet has brought revolution in every sphere of life. It has changed the way of our thinking, working and living. Last decade of 20th century witnessed major market players leaping to cash the dividends of this breakthrough. All major companies of the world are now utilizing the internet as an alternative channel for promotion and selling of their products. This paper critically analyzes the impacts of this transformation on the traditional channels and customers thereby focusing on future of the world markets. The research is backed by critical analysis on various aspects related to marketing channels around the world. At the end there are some useful guidelines for…show more content…
ONLINE SELLING / DIRECT CHANNEL In last ten years, internet users have increased from 10 million to over 600 million worldwide. [NUA, web survey] This rapid increase has brought a paradigm shift in the business strategies and introduced new marketing concepts. According to figures released by US department of Commerce, online retail sales in US alone had crossed over $ 50 billion in the year 2002. [E-Commerce Times, February 26, 2003] Analysis of the sharp rising graph of sales over internet, predicts direct channel to be the most utilized channel of the future. A lot has been written on the subject of e-commerce and its importance in today's expanding world of technology. A critical appraisal of online selling / direct channel highlights the following aspects: 1) The customer has a variety of options by having quick and easy access to all sort of information about a particular product along with a comparative study of same product of other manufacturers. This luxury was not there in traditional channel. The customer was restricted to limited stock available with the retailer. 2) Manufacturer can directly communicate with the customer and implement the concept of customization, conveniently. An air of trust and understanding can develop between the seller and buyer which lead to ultimate improvement in the quality of product. 3) The sellers remain in better control of the selling and marketing activities. He knows exactly what is in demand and what is
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