Marketing Your Product Through Distribution Channels

Distribution is certainly one of the important four components of the whole marketing mix. Distribution is basically the distribution method by which a product or a service is made available to the consumer or company user who needs it. This can either be done directly by either the manufacturer or distributor or via intermediaries or channels. The most common and widespread form of distribution is by way of retail sales. Distribution also takes place in distribution centers and warehouses.

In a retail distribution chain, there are basically three types of distribution: chain top, chain middle and chain bottom. Each type of distribution has its own characteristics, advantages and disadvantages. In a chain top distribution, products move from the manufacturer or distributor to the final consumers in a straight line. Distribution thus serves as an interface between the manufacturers/distributors and the end consumer.

In a chain middle distribution channel, goods are distributed between retailers, wholesalers and dropshippers. In this type of distribution, as products are ordered from the retailer, they are brought to the factory or warehouse by the wholesaler. Then they are delivered to the final consumer in a straight line. And lastly, products are distributed by the dropshipper to the final consumers in a wide area. The key here is that goods are brought to the customer first and then sold. In short, distribution channels provide the interface between the manufacturer and the end consumer.

In order to understand the importance of intermediaries or channels, one must have a clear picture of what a distribution channel actually does. Distribution channels work by providing the manufacturers or the distributor with resources such as raw materials and labor which are essential for the production process of a particular product. Once these resources are in place, it becomes easy for manufacturers to produce more of their goods. On the other hand, distributors help manufacturers by providing them with means of transporting goods in bulk or packaged quantities.

Distribution channels in today’s modern world are no longer restricted to distribution of raw materials or simple bulk items. The development of information technology has led to the emergence of internet and the internet has become an integral part of our lives. Today, distribution channels are no longer limited to wholesalers or retailers alone. Distribution can also be done through services of merchandisers, online stores, departmental stores and supermarkets. Wholesalers and retailers play a vital role in the supply chain process because they help manufacturers by carrying out warehousing operations. They also arrange shipment of finished goods to the final consumers.

A very important aspect of this channel is retailing. In today’s world, most of us shop on a daily basis which means we are constantly buying new and fresh items. Answering this need of consumers is how wholesalers and retailers enter into a partnership to make selling feasible and profitable.

The distribution channels should also cater to a specific target audience. There are some products that target specific groups. This means if you are going to market children’s products, it is important that your marketing mix is geared towards children. For example, toys, clothing and electronic gadgets are among the products that target children. Other products like cleaning and health products are also best marketed towards adults. Proper targeting of your marketing mix will lead to better sales and profits.

Lastly, there is another important factor to note about indirect marketing channels. These channels tend to cost less and are more convenient to use compared to direct marketing. Moreover, this type of marketing allows you to target specific markets and demographic groups. This type of advertising is advantageous as it is less expensive than traditional direct marketing techniques.