The channels of product distribution, or how to reach your product to the consumer

Today the system of product distribution and marketing channels are an integral part of any development strategy for the company, allow it to expand its markets, increasing the customer base, improve the competitiveness of their products.In this connection, in the construction strategy must take into account the system.

product distribution system in marketing is a complex process of movement of goods, which includes items such as: registration of orders, warehousing, control over the amount of merchandise, transportation.At the same time, to build a system of product distribution company can be used as internal services, and to involve outside organizations.

channels of product distribution - an important part of the marketing policy of the company.From what channels the company chooses for himself the success of its products on the market, and, of course, the income of the company.

So, let us analyze in detail the nature and types of product distribution channels.

product distribution channels

are the way in which there is physical movement of goods from producer to final consumer.By the end consumer goods means a person uses goods to meet their own needs.On the other hand, channels of product distribution - it's also a way, receptions delivery of goods to customers.Also, this term can mean the totality of natural and legal persons who are intermediaries in commodity circulation.

Depending on the complexity and structure of product distribution channels can be divided into 3 main types: direct, indirect and mixed.

In the case of the use of direct channels of goods supplied goods directly from the producer to the end consumer.In this scheme, which is not involved whatsoever mediators.That is the chain of movement of goods is very simple and looks like this: the manufacturer - the final consumer.When using a direct product distribution channel all functions on the movement of goods and the sale of its own takes on its manufacturer.

direct channels of product distribution, usually used in the marketing of such products as sophisticated production equipment or the production of goods or services for a specific order.

next type of product distribution channels is more common - is the indirect channels.In this case, the manufacturer does not assume some of the functions of the delivery of goods to final consumers.The scheme is complicated by the movement of goods.It adds a new element - the mediator (s), ie, the chain is as follows: producer - the mediator (s) - the end user.The mediators act as dealers, distributors, agents, retail intermediaries.Manufacturer Of course, losing a direct relationship with the consumer of their products, but the use of such a channel provides a clear advantage - market expansion and greater efficiency in sales.Through his connections and scope of the activity wholesale and retail intermediaries ensure wide availability of the goods and bring it to the target markets.Manufacturer, though losing some of its profits for the benefit of intermediaries, nevertheless remains in scoring as save their own time and resources.Market expanded its products to such an extent that would have been available to the manufacturer, if he acted in the market alone.

latter type of product distribution channel - mixed - combines elements of the first two channels.

important condition for the effectiveness of the used channels of product distribution - is the minimum cost of the seller and timely delivery of goods to the market.As a result, good performance can be achieved.