What exactly is the product distribution? Distribution, in simple terms, is the way in which you make your goods or services available to possible buyers. In the most simplistic form, you sell directly to the consumer. There are no warehouses, no stores, no third-party distributors, and so forth. The distributors are the ones who arrange the sale of the goods to your customers.
Categories Of Distribution
Retailers, manufacturers, and wholesalers form the three major categories of distribution. The product distribution strategies of manufacturers and retailers differ slightly from one another. For example, a manufacturer might create a catalog for retail customers and advertise it. Retailers, on the other hand, would have a fixed location where customers can go to purchase their items. Some companies even create a website for their retail customers to place their orders online.
Dropshipping and wholesaling are two other popular and effective product distribution strategies. These strategies differ from one retailer to another, but all have a common aim: they help consumers save time. Most of the time, consumers do not have the time or resources to visit and purchase their preferred items. Some retailers try to reach their consumers through various means making it even easier. For example, many use podcasts to provide content marketing, even going as far as to buy Spotify followers.
Consumers depend solely on the manufacturer, distributor, or retailer to provide them with what they need. With these strategies, the manufacturer ensures that the retailer or wholesaler ships the item directly to the consumer, saving both time and money.
The Most Common Product Distribution Strategies Is Through Mass Marketing Channels
Mass marketing channels include radio, television, billboards, catalogs, websites, and the like. The distributors arrange to have their items distributed by means of these media, ensuring that consumers hear about their products and buy them. Examples of such media include television commercials and radio advertisements.
Selective distribution is one of the most effective product distribution strategies, as it enables retailers to ensure that only those consumers who require the item will be given the opportunity to buy it. This strategy usually targets buyers with disposable income, ensuring that they will purchase regularly. Examples of selective distribution channels include supermarkets and mass merchandisers. Other forms of selective distribution include vending machines, private-label goods, and private party sales.
Product distribution strategies can also vary according to a geographical area. For example, one company may sell its products in the European market, while another may sell its goods only in the United States. Therefore, every company has its own unique product distribution channels, which ensure that the products are made available to every person who might require them. There are different ways to reach out to these buyers, depending on the country that the company operates in.
Comparing Popular and Less-known Strategies
Product distribution strategies that work for a single product type can be easily adapted to other companies. One good example of this is an agreement between a clothing manufacturer and a shoe manufacturer that allows the manufacturer to distribute footwear that its shoes are manufactured in. Another popular product distribution strategy is used by many small businesses, which are based in a remote location, such as a farm or a construction site. The manufacturer delivers the raw materials to these locations, while the retailer provides the finished product, such as clothes.
Apart from the more well-known product distribution strategies, there are also ones that have less-known effects. One strategy that some companies use is to have only one store in a particular area. This strategy not only increases the chances of customers being able to find the store easily, but it also increases the likelihood of customers buying a product when they see one. In addition, exclusive distribution, or having just one store, makes customers think that a product is of better quality than a product that has a wider distribution. Other intense distribution strategies include selective distribution and bulk distribution.