Implementing a distribution channel strategy is part of the
marketing program, in which all the tools of the program are aimed at better meeting consumer needs. As well as the product strategy and its positioning.
The distribution channel is the path that is
followed in the process of marketing a product from the manufacturer to the industrial user or consumer. Determining factors.
COMPANY: Organization of activities
MARKET: Organizations or or pursuit of economic or commercial people with different needs purposes to satisfy the needs for to satisfy. goods or services of society.
INTERMEDIARIES: They are individuals
PRODUCT: These can be tangible or or companies that make it possible for intangible in the case of being a the product to arrive from the service, they have characteristics manufacturer to the end user, such as brand, packaging and price. essentially facilitating the sales process. DISTRIBUTION CHANNELS
DIRECT CHANNEL INDIRECT CHANNEL
When the distribution channel is direct, the When the distribution channel is indirect, the product manufacturer sells directly to the final consumer requires the participation of intermediaries before without the need for intermediaries. reaching the final consumer.
INTERMEDIARIES: They are agents that collaborate
between organizations for the promotion, distribution and sale of their products or services to the final consumer. they implement some specific functions that producers normally prefer not to do themselves.
Investigation: Gather information in order to create a strategic plan.
functions Contact: Find potential buyers. Physical distribution: Establish product transport mechanisms. Promotion: Create messages that stimulate the interest of the consumer towards the product. Negotiation: Agreement between seller and customer regarding price. Adaptation: Determine the design and adjustment of a model to the product according to consumer demands. Financing: Seeking funds to finance marketing. Risk acceptance: It involves accepting the risks of the marketing functions in the distribution channel.