Final answer:
Using an indirect channel of distribution has implications such as decreased control and reduced profit margins. To deal with these implications, businesses can carefully select and manage intermediaries, maintain open communication, and explore direct distribution options.
Step-by-step explanation:
When using an indirect channel of distribution, there are several implications to consider. One implication is decreased control over the distribution process. Since the product passes through intermediaries, there is a risk of the message being altered or the product being mishandled. Another implication is reduced profit margins. Intermediaries typically require a commission or fee for their services, which cuts into the overall profitability of the product.
To deal with these implications, businesses can implement certain strategies. One strategy is to carefully select and manage intermediaries. This includes conducting thorough due diligence and setting clear expectations. Another strategy is to maintain open communication with intermediaries and provide training and support to ensure they represent the product accurately and handle it appropriately. Additionally, businesses can explore direct distribution options to retain more control and potentially increase profit margins.