What is Direct Product Profitability (DDP) in Marketing? PDF Download

Learn Direct Product Profitability (DDP) definition in marketing with explanation to study “What is Direct Product Profitability (DDP)”. Study direct product profitability (ddp) explanation with marketing terms to review marketing course for online MBA programs.

Direct Product Profitability (DDP) Definition

  • A way of measuring a product's handling costs from the time it reaches the warehouse until a customer buys it in the retail store.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong



Direct Product Profitability (DDP) Explanation

Direct product profitability is a technique of calculating product handling cost, it starts when it reaches warehouse till the process end up meeting end users in the retail store. It counts every aspect of cost incurred in product manufacturing includes; raw material, processing, placing of product in storage, record keeping, cross checking, loading of goods, and transportation.

Keep Learning Marketing Explanations

What is Everyday Low Pricing (EDLP)?

Everyday low price (EDLP) is a pricing strategy provides consumers an opportunity of low pricing without the wait for sales ...

What is Consumer Product?

Consumer products are the products purchased by a common consumer for household consumption. It is also known as final goods. ...

What is Direct Product Profitability (DDP)?

Direct product profitability is a technique of calculating product handling cost, it starts when it reaches warehouse till the process ...

What is Segmented Pricing?

Portioned evaluating is said to be done when an organization fixes or sets more than one cost for an item, ...

What is Complex Buying Behavior?

Complex buying behavior happens when the end user is effectively searching for the purchase of brand when market offers significant ...

What is Demographic Segmentation?

It is market segmentation on the basis of gender, age, religion, beliefs, ethnicity, race, income and educational background. It more ...