Marketing Distribution Channels

Marketing Distribution Channels

Marketing distribution is the process of making available a product or service to the consumer in need of the service or the good. To make available the service or goods, the goods or service provider can either directly or indirectly provide for the service. The manufacturer and the consumer interact directly in a direct distribution channel. The intermediaries, on the other hand,  connect the manufacturers and the end-user of a service or a good. A marketing distribution channel is the means or the avenue through which a good or service provider utilizes to ensure that the good or service reaches the customer.

Distribution channels comprise of wholesalers, retailers, distributors, the internet as well as the end-user who is the final consumer of the good or service. The internet has emerged as a top distribution channel in marketing, especially by catering to specific topics such as health. Marketing distribution channels are important as they provide the link through which goods and services reach consumers. In most cases, the manufacturer of products and service providers are in one place while the consumers are, of course, scattered all over. To ensure that the final consumers have access to the goods and services, marketing distribution channels, whether direct or indirect, makes that happen. The diagrams below illustrate both direct and indirect marketing distribution channels.

(i). Direct Marketing Channel

Producer-Consumer                                                                    Consumer

(ii). Indirect Marketing Channels

Producer                                    Wholesaler                      Retailer                               Consumer

Wholesalers buy and store goods in bulk from the producer and sell to retailers in smaller quantities. Retailers, in turn, sell to the consumers and are widely dispersed to tap into the consumers’ market.

To market a new ketchup product, an individual could embrace several distribution channels to reach the consumer. One of the most effective ways to reach the consumer is via the internet. To effectively do this, the individual selling the new ketchup product should run promotions on sites such as youtube or twitter. The internet has a wide following that, if well tapped, could open endless opportunities for the launching of a new product. The seller can also rely on satisfied customers to market the ketchup on their social media platforms.

Another channel would be to engage the distributors such as retailers selling similar products. There are existing ketchup products, and thus, partnering with such partners would go a long way in ensuring the circulation of the new ketchup product. The retailers have been in the market already, and hence they understand the market better. The individual supplying the new ketchup product should provide inventories and other sales materials as well as mapping out their price, considering a fair profit for either side. To build an active channel, establishing goals, service requirements, and providing reporting mechanisms is essential.

Lastly, another distribution channel would be to engage a sales team. Building a channel of qualified and well-trained sales force would go a long way in growing the individual’s new ketchup product. The salesforce could return feedbacks from the field upon which the individual can act on to improve the product and ultimately grow their sales. However, if the individual need to maintain ultimate control over the product’s delivery, the intermediaries are not a good option