What is a Distribution Example?

 One of the most important components of the marketing mix is distribution. Products that are distributed reach a larger audience and generate more revenue. Companies have traditionally relied on their own brands and stores to promote their products. However, if they were to expand their own brand stores, they would face prohibitively high costs. As a result, in order to maximize their visibility and revenue potential, they sell their products through retail outlets. Marketers will argue about which component of the marketing mix is more important than another, regardless of the method used. Unless it provides superior products, a company is at a disadvantage without the distribution component of the marketing mix.

Direct selling is the most traditional form of marketing. Direct selling occurs when a product's manufacturer contacts a customer directly. Peddling, brand retail stores, and online ordering are all examples of direct selling. These methods are commonly used for perishable, costly, and geographically concentrated goods. Retail stores, on the other hand, buy the product from the manufacturer and sell it to the customer directly. This is known as a one-level channel of distribution, and it is the most common method for purchasing goods.

Direct distribution models involve selling products directly to customers. Companies may choose to sell directly to consumers, whereas indirect distribution models allow the product to be sold through intermediaries. For example, an online maker store may use direct distribution marketing to promote their inventory on a marketplace such as AliExpress. Indirect distribution models can be complicated because the manufacturer must sell its products to a supplier who will market the products. Direct sales marketing is frequently required for businesses that provide services such as food or entertainment.

Three middlemen are involved in traditional distribution channels. Products are sold by manufacturers to retailers or wholesalers. They then sell them to customers, who then buy them. This model is appropriate for producers with limited financial resources and product offerings. Retailers and wholesalers serve as intermediaries between manufacturers and customers. The manufacturer loses direct consumer contact and is frequently less flexible than the other two. This type of distribution, however, works best for industrial products with a broad geographic reach.

Distribution channels are the paths that a company takes to reach its customers. A light bulb manufacturer may sell to a customer directly, whereas a retailer may sell to a third party. They form the sales chain when combined. Depending on the number of intermediaries, distribution channels can be short or long. A company would have a direct relationship with the customer in the former case, whereas an indirect channel would involve several intermediaries.

Distributed products are frequently referred to as 'locations.' A physical product, a software application, or a digital service can all be considered places. Distribution is critical in ensuring that the product reaches its target audience. This can refer to the location where customers buy or use it. E-commerce has altered distribution slightly. Businesses can now have a physical store, while digital-only products can be downloaded directly from the provider or distributed through a value-added reseller.

Through its distribution strategy, Apple has created a unique experience for consumers. Apple's distribution strategy has reduced its value chain and made its products more affordable to mass consumers. However, distribution channels and supply chains are frequently confused. Both are necessary for effective marketing. They can assist in getting a product in front of customers, but the supply chain is responsible for getting a product to its intended audience. As a result, the two can complement each other. While they are not the same, they both work to increase the value of the company.