The Nature of the Product

The Nature of the Product

The Nature of the Product

The nature of the product one is ONLINE MARKETING will have considerable bearing on the particular distribution channel which will prove most suitable. For example, there are many grocery items which it would be highly uneconomic for the single-product manufacturer to distribute to each of the thousands of grocery outlets in the United Kingdom. The wholesaler, who buys his product in bulk and distributes it, in small quantities, along with small quantities of many similar items to these same retailers, is conducting a far more economical operation. On the other hand, the manufacturer who produces a wide range of related products can attract orders from individual retailers of an economic size and is able to afford, therefore, the cost of distributing directly to the retail trade.

For some products, wholesale distribution remains essential. Small-scale producers, such as farmers and market gardeners, are clearly not in a position to distribute their own produce. There are certain types of products, such as tea and wool, which need blending or after-processing and which must depend upon the specialized technical and commercial 'know-how' of the wholesale trade. Furthermore, some highly perishable foodstuffs, such as fresh fruit and vegetables, must be distributed rapidly before they deteriorate to a nil value. Only the highly organized and experienced wholesalers, operating in traditional markets in London and the main provincial cities, can provide this service.

There are, however, products which lend themselves to direct sales to the retailer. Among these are fashion goods which carry a high profit margin and which retailers purchase in large quantities at infrequent intervals. Where the product has a high unit value, such as a motor-car, refrigerator or a TV set, the manufacturer can usually well afford to meet the costs of sales and distribution and, because large, diverse stocks are unnecessary, he does not need the wholesaler.

For some items of manufacture, however, there is a more fundamental reason for choosing to distribute direct to retail outlets or, indeed, direct to the consumer. These are goods over which it is desirable for the manufacturer to exercise some control during the distribution process or after they have been sold. Into this category we may put certain processed foodstuffs, such as milk products, ice cream, margarine or meat pies, where the brand name goodwill is associated with-and dependent upon -a guarantee of freshness.

Where the nature of the product is such that adequate after-sales service is essential-motor-cars, refrigerators, TV sets the manufacturer can exercise far better control if he distributes directly to retail outlets.


More information on - Distribution Via The Wholesaler



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