Indirect Marketing Advantages and Disadvantages
Indirect Marketing Advantages and Disadvantages
Indirect Marketing: Nowadays, there are a number of intermediaries between the farmer, the weaver and the consumer. This is called indirect marketing.
In the production of silk, agriculture plays a crucial role. To get better silk yarn, the cultivator needs better mulberry trees to feed the silkworms. For this, the cultivator needs fertilizers and pesticides. All these are provided for by the end buyer or the intermediary. Wholesalers or bulk buyers give specifications to dealers or the intermediaries who in turn visit the place of manufacture to place orders. The dealers convey the specifications given by the wholesaler to the weaver. This is called the putting-out system.
Disadvantage: In this system, the weaver is reduced to the level of a mere paid laborer where everything is taken care of and controlled by external agencies. It is disheartening that the weaver, who puts in the maximum effort and whose labour is indispensable to the silk saree production, gets paid the least. The intermediary comes next who gets a commission on the order and sales. But the one who makes maximum profit is the shop owner or the exporter. Thus, the distribution of profits is highly unequal.
Advantage: This system of indirect marketing, however, promotes job opportunities for everyone, especially the weaver need not worry about buying raw materials, waiting for customers etc. No stock would remain unsold with him as all the sarees are taken away from him he gets paid. These days, many weaver have joined together and formed cooperative societies to protect their interests. The government has also has stepped in to help them in many ways.
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