The Current Distribution Pattern

The Current Distribution Pattern

The Current Distribution Pattern

The manufacturer with a brand-new product for the market may decide to ignore the distribution pattern which currently exists for that class of product. In doing so, however, he runs certain risks. Markets, like individual consumers, tend to be conservative and a new product usually will have enough obstacles to overcome without inviting the resistance which can result from a ONLINE MARKETING policy which tends to flout trade custom. There have been occasions, of course, when innovation in the choice of the distribution method has been hailed as inspired marketing. A good example may be seen in the development of the franchised catering establishment, such as the Wimpy Bar or the franchised retail laundry undertakings known as launderettes.

The great advance which has occurred in the development of product branding has been accompanied by a dramatic increase in the adoption by manufacturers of the direct-to-retailer method of distribution.

By going direct to the retail outlet, the manufacturer maintains a far greater control over his product's destiny. He is able to co-ordinate better the efforts of his sales force with advertising and promotion schemes. He can adopt a far more aggressive ONLINE MARKETING policy in the knowledge that it will not be frustrated by wholesalers holding divergent ONLINE MARKETING views or with opposing interests to serve. Because product branding necessitates a heavy investment in consumer advertising, the manufacturer must ensure adequate shop distribution for his product. This places further emphasis on the need for control over the sales made to retail outlets.

There are other factors which have played their part in accelerating the direct-to-retailer approach. Within the retail trade itself, there have been major changes, with the gradual extinction of many small independent traders and the growth of large group concerns-variety chain stores, multiples and consumer co-operatives. There has been a movement of the population in Britain, over the last half-century, away from the countryside and into the towns, which has helped the manufacturer by enabling him to supply the more easily located urban retailers economically and thus being able to dispense with the services of the wholesale houses, Cheaper transport facilities and the improvement in long-distance road haulage brought about by the motorways, has facilitated the movement of goods. Again, this assists the producer to make direct deliveries from his factory to the retailer and reduces his dependence upon the depots and warehouses of the wholesale trade.


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