Post by account_disabled on Dec 24, 2023 22:25:03 GMT -8
Indirect distribution channel Now, indirect channels are those that require one or more intermediaries for the product to reach the final consumer. These intermediaries can be wholesalers, who sell the product in large lots, or retailers, who sell them individually. An example of wholesale sales would be to buy a box with 5 packages of 32 rolls of toilet paper each, while retail sales would consist of buying only 1 package of 4 rolls. The advantage of buying wholesale is that special discounts are applied, which saves a lot of money. At the same time, depending on the number of intermediaries involved, indirect channels can be divided in 3 ways: Short distribution channels: These are those in which the manufacturer, a retailer and the final consumer intervene. It is the simplest channel of all and Amazon is an example of a company that uses this strategy.
Long distribution channels: In this case the manufacturer, wholesalers, retailers and the final consumer intervene. It is similar to the previous one, with the difference that Phone Number List they use wholesalers. Coca Cola uses this type of distribution. Double distribution channels: It is the same as the long channel, but where agents intervene to help market the products. The clearest example of this are franchises such as KFC, McDonald's, Burger King, Wendy's, among others. What type of channel should be used depends a lot on the size of the company, the resources it has, its type of client, and above all, its sales objectives.
The importance of distribution channels and some examples And what is the importance of distribution channels? When we talk about large enough companies, they may have their own distribution media in addition to intermediaries; But - on the other hand - if they are small and medium-sized companies, then they probably only distribute through intermediaries. For example, a video game developer can distribute its products in different ways: in physical format they can sell it through shipments with Amazon, or through other departmental or specialized companies.
Long distribution channels: In this case the manufacturer, wholesalers, retailers and the final consumer intervene. It is similar to the previous one, with the difference that Phone Number List they use wholesalers. Coca Cola uses this type of distribution. Double distribution channels: It is the same as the long channel, but where agents intervene to help market the products. The clearest example of this are franchises such as KFC, McDonald's, Burger King, Wendy's, among others. What type of channel should be used depends a lot on the size of the company, the resources it has, its type of client, and above all, its sales objectives.
The importance of distribution channels and some examples And what is the importance of distribution channels? When we talk about large enough companies, they may have their own distribution media in addition to intermediaries; But - on the other hand - if they are small and medium-sized companies, then they probably only distribute through intermediaries. For example, a video game developer can distribute its products in different ways: in physical format they can sell it through shipments with Amazon, or through other departmental or specialized companies.