Choosing the Right Business Distribution Model

The marketing field is mainly divided into four parts that include product materials, pricing, place, and promotion. Without any doubt, all these products must be given equal significance for the marketing as well as the sales of any product or service. Still, it is relatively challenging to look after the place factor that is defined as the distribution of a product or service.

Business Distribution

Business distribution can be defined as the process of providing your products or services to the end-users or consumers. Usually, the place of production and the place of consumption will be different and the goods will have to be distributed to the designated area or places. When it comes to the distribution of products, it can be done in two ways; direct distribution and indirect distribution. The former is done by the manufacturer itself whereas the latter is done through distribution channels or intermediaries. The right type of distribution method for your product or device will depend on several factors. Some of those crucial elements include;

  • Product – When deciding on the right distribution model, consider whether your product is durable or perishable.
  • Market – Another factor that plays a major role in the distribution of a product is the market size. Note that the direct distribution model will not be a great choice if you are dealing with a large market. In fact, intermediaries or indirect marketing will be a perfect choice if your targeted markets are scattered.
  • Company – The size of your company, as well as the product materials you use, can also pose a huge impact on your distribution strategy.
  • Marketing environment -If you are doing business in a slow economy system or a depression, a shorter distribution chain will be the ideal option. When it comes to a healthier economy, you are likely to find several alternatives.
  • Cost – Needless to mention the cost of distribution channels including transportation, storage, warehousing, tolls, etc., are prominent factors to consider when deciding on your distribution model.

Why consider the indirect distribution

Distribution plays a major role when it comes to the ability of an enterprise or organization to sell its products. As mentioned earlier, indirect distribution will be the ideal choice if you are dealing with a scattered or large market. Below is a list of the upsides associated with intermediate distribution models.

  • Direct distribution demands huge resources and time. You can tackle this issue using intermediaries
  • The stores and intermediate markets that you use as your distribution channel are likely to promote your products to enhance their traffic and meet their business goals. This will, in turn, help you with your marketing strategies
  • You can rely on your agents and intermediate distributors if you plan to expand your business globally.

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