What is Direct Product Profitability (DDP) in Marketing?

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.

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