INTERNET MARKETING

INTERNET MARKETING

INTERNET MARKETING

 

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ESTABLISH GOOD DISTRIBUTION CHANNEL

 

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Distribution is the process of making a product or service available to consumers by using direct or indirect means, by taking it from the point of production (producer/manufacturer) and bringing it to the point of sale (retail store). 

For example, coffee comes from the farmer, to the exporter, to the importer, to a distributor and then to the retailer.  So the next time you go to starbucks ask yourself, how did the coffee get there? 

Many retail outlets obtain their supplies through distribution channels.  Rearly do they prefer to work with producers/manufacturers to get items in their stores.  They will only work with their authorized distributors to get items on their shelves

Distribution channels are made up of independent organizations (intemediaries) such as Resellers, Wholesalers (also known as Distributors or Wholesale Distributors, Suppliers or Wholesale Merchants), Agents and Brokers. 

A distribution channel with the least amount of intermediaries will enable you to earn more.  A distribution channel with more intermediaries will add more to the final retail price of the product at the point of sale thus making your product too highly priced to sell well.  Each intermediary in the distriution channel markup the price of the product in order to get their piece of the pie.  Some can go as high as 35%. So, you have to set the retail price of your product with that factor taken into consideration

There are two types of Distribution Channels:

Direct Model

Indirect Model

 


 

 

 


 

 

 

 

 

 

 

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