In marketing, goods can be distributed using two main types of channels: direct distribution channels and indirect distribution channels. A distribution system is said to be direct when the product or service leaves the producer and goes directly to the customer with no middlemen involved.
B2B and B2C companies can sell through a single distribution channel or through multiple channels that may include:
- Direct/Sales Team.
- Value-Added Reseller (VAR)
A plan created by the management of a manufacturing business that specifies how the firm intends to transfer its products to intermediaries, retailers and end consumers.
What is a 'Distribution Channel' A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors and even the internet itself.
A chain of intermediaries through which a product moves in order to be made available for purchase by a consumer. An indirect channel of distribution typically involves a product passing through additional steps as it moves from the manufacturing business via distributors to wholesalers and then retail stores.
Marketing Mix Place and Distribution strategy is about how effectively a firm gets its product to consumers and end users. Firms can sells their products directly to the consumer (direct distribution) or through intermediaries (indirect distributions).
Definition. A direct channel of distribution describes a situation in which the producer sells a product directly to a consumer without the help of intermediaries.
A distribution network is an interconnected group of storage facilities and transportation systems that receive inventories of goods and then deliver them to customers. It is an intermediate point to get products from the manufacturer to the end customer, either directly or through a retail network.
Distribution (or place) is one of the four elements of the marketing mix. Distribution is the process of making a product or service available for the consumer or business user that needs it. This can be done directly by the producer or service provider, or using indirect channels with distributors or intermediaries.
In simple terms, retail means that you, the product manufacturer or producer, sell your product directly to the consumer. Selling wholesale means you typically sell your product in bulk quantities to a “middle man” who in turn sells it to the consumer (i.e. other retailers).
The three levels of distribution intensity are intensive, selective and exclusive.
- Intensive Distribution.
- Selective Distribution.
- Exclusive Distribution.
In general, they all affect the methods used by a business to acquire, transport and resell goods within an industry. A central difference is that logistics encompasses more elements of planning and information flow, whereas distribution more often describes the physical movement of goods.
Channel conflict occurs when manufacturers (brands) disintermediate their channel partners, such as distributors, retailers, dealers, and sales representatives, by selling their products directly to consumers through general marketing methods and/or over the Internet.
Pull marketing is an approach designed to draw customers to a brand through search engine optimization (SEO) and other non-intrusive methods. The ultimate goal is to strengthen consumer awareness of a brand and products and foster demand.
Channels of distribution: - means a process through which the products are transferred from the producers to the ultimate consumers. It also known as marketing channels. The channels members such as merchants agents wholesalers and retailers are middlemen in distribution and they perform all marketing functions.
Selective Distribution is a type of distribution strategy that lies and operates between intensive and exclusive distribution. Selective Distribution involves using more than one, but lesser than all the intermediaries and distributors who carry the company's products on a basis of a company specific set of rules.
Manufacturers who choose this distribution channel often deliver higher priced products with lower sales volume. Manufacturers who remove these intermediaries can command higher profit margins as a result. Manufacturers using direct sales take on full responsibility for direct consumer communications and marketing.
The goal of channels of distribution is to move products from producers to final consumers. Along the way, products may go through channel members known as intermediaries or middlemen. Industrial distributors are a type of intermediary. Increased profits for businesses is not a benefit for consumers.
There are three basic types of population distribution within an area.. From top to bottom: uniform, random and clumped.