However, wholesalers are incapable of marketing the products and also eat a big chunk of the profit. In such a scenario, telemarketing plays an important role for a company.
The article is highly relevant from point of view of Distribution Strategies because with changing nature of businesses, the proliferation of technology and shorter product cycles, the distribution strategies must also evolve. A large number of customers are getting used to Internet and e-commerce. Telemarketing has been existent for a long time as an effective sales channel. However with growing customer base and complexity, larger organizations need to take help of specialized brokers and agents to take advantage of economies of scale. It saves considerable long-term costs for the company as well. Also the use of wholesalers for distribution must be though over rigorously. While they are a vital link in the distribution chain, they also act as a cost centre for a company.
Economically, it may not make sense for small organizations to use external agents or brokers for this purpose. However, in order to venture into foreign markets, they may be required in small