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Disintermediation is the process of removing middlemen from distribution channels to allow companies to deal directly with customers, often through websites. Companies use disintermediation to cut costs and increase profits by eliminating intermediary fees. While electronic channels remove the need for some intermediaries, companies still require people for logistics functions like product fulfillment. Dell is an example of a company that uses disintermediation by manufacturing and selling computers directly to end customers.

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Tannavi Ghosh
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75 views

DSCM

Disintermediation is the process of removing middlemen from distribution channels to allow companies to deal directly with customers, often through websites. Companies use disintermediation to cut costs and increase profits by eliminating intermediary fees. While electronic channels remove the need for some intermediaries, companies still require people for logistics functions like product fulfillment. Dell is an example of a company that uses disintermediation by manufacturing and selling computers directly to end customers.

Uploaded by

Tannavi Ghosh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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DISINTERMEDIATION:

● It is the process of removing the intermediaries by cutting the involvement of middlemen in the
distribution channel. Basically the companies want to deal directly with their customers, through
online means mostly their websites.
● The company incorporates this process for cost-cutting and increasing their profit.
● In spite of using all these electronic channels, they would need people for the logistic process
involving product flow.
Example:
Dell uses the process of disintermediation for distribution. They are one of the leading brand who
manufactures their own PCs and sends their products directly to end customer avoiding the use of the
traditional channel to cut the intermediary cost and channel conflict which might affect the sales.

Source: https://www.garyfox.co/b2b2c/

REINTERMEDIATION
● Reintermediation is the process of reintroducing the intermediaries between producers and
consumers.
● All the producers felt that removing intermediaries could make the process fast but gradually they
need intermediaries in new form i.e through internet channels (e-commerce)
Example: Companies using Amazon.in as an e-commerce channel that shows the
reintermediation process.

Source: Marketing channel management book (8e) by Bert Rosenbloom


Usage of internet marketing channel increased because:
● Fast pace technology and people or potential customers mostly spend their time scrolling pages
online.
● Producers get a wide customer base in a single platform.
● Consumers have a huge variety of dealer choice for their convenience.
● It enhances two-way communication
● Information flow is fast.
● It increases the visibility of the company among consumers.

PROXIMITY MARKETING

Enabling mobile usage for attracting customers and also doing bill payments through mobile transactions
is one of the most used tactics now, when a customer enters any website of store or any retail they asked
for location tracking which people allows either unconsciously and consciously these enables the
marketers to track their customer and send the appropriate advertisement at right place and time, this all is
included in m-commerce.

PROS of m-commerce location tracking strategy (proximity marketing strategy)


● It helps to increase customer experience with each step guidance.
● Helps in the navigation to store for interested customers.
● It enables the companies to include proper use of analytics and also track conversion as per the
marketing activity done for customers.
● It increases brand awareness.

CONS of m-commerce location tracking strategy (proximity marketing strategy)


● Privacy issues might arise from a customer point of view.
● Management issues could occur because all companies do not have such technological advanced
equipment to smoothly run a proximity marketing strategy.
● If there is mismatching in the information provided and expected product of consumers then it might
decrease the conversion rate

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