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Distribution Strategy

In: Business and Management

Submitted By stellaroot
Words 1886
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Distribution Strategies:
Think of a distribution channel as one slice of the overall marketing pie. It is how a company gets its products or services to the consumers.
Few producers sell their goods directly to the final users. Most use intermediaries to bring their product to market.
Most producers do not sell their goods directly to the final users; between them stands a set of intermediaries performing a variety of functions. These intermediaries constitute a marketing channel (also called distribution channel)
How can channel members add value:
-In making products and services available to consumers;
-Gathering key information about potential and current customers, and competitors;
- Promotion Developing and spreading communications about offers;
Physical distribution Transporting and storing goods;
Risk taking Assuming some commercial risks by operating the channel (e.g. holding stock) ;

The primary purpose of any channel of distribution is to bridge the gap between the producer of a product and the user of it.
Distribution channels include wholesalers, e-commerce websites, catalog sales, consultants, a direct sales force who sell over the phone, in person or both, dealers, home shopping networks and retailers.
Each channel member depends on the others. * For example: Ford Dealer depends on Ford to design cars that meet consumer needs. Ford depends on their dealers to attract consumers, convince them to buy Ford cars.

The best promotion or marketing won’t get the product bought if it is being sold or distributed in the wrong place. For example, Mercedes-Benz may have problems selling their cars in the poor rural areas of Thailand. The distribution channel should be matched against its buyers. Once businesses determine where their customers are, they should make sure to have their distribution channel flow directly there.…...

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