DECIDING THE DISTRIBUTION METHOD

DECIDING THE DISTRIBUTION METHOD

DECIDING THE DISTRIBUTION METHOD

The manufacturer of consumer goods has at his disposal three main distribution channels. He can sell to a wholesaler in bulk who will break bulk and resell the goods in smaller quantities to the retailer; or he can himself sell in small quantities to the retailer; or he can opt to by-pass 'the trade' and sell direct to the consumer, probably in very small quantities or in individual units.

The choice of which distribution method to adopt will depend upon many factors and the ONLINE MARKETING Manager with a new product to bring to the market must weigh each carefully before he decides his policy. Very often, the entire success of one's ONLINE MARKETING plan depends upon the selection of the right distribution method. The factors to be considered may be summarized as follows:

1. The nature of the product to be marketed.

2. The scope of the market it is intended to penetrate.

3. The distribution pattern which exists currently for this class of product.

4. The production costs for the product.

5. The size of one's existing sales force.

6. The amount of the advertising appropriation to be devoted to the product.

7. The price policy it is intended to adopt.

8. The company's existing transport and storage facilities.

9. The company's financial resources.

In order to achieve a balanced assessment we must examine each of these factors in some detail.


Next Step: The Need For Corporate Planning



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