1.3.4 Distribution GapFill

Distribution is one of the 4Ps of the marketing   jumble combine mix mingle - it is "place". There are three main types of distribution channel that help products to reach   productsconsumers services retailers .

4-stage   flow distribution allotment allocation means that the product starts at the manufacturer then is shipped to    a vendor a marketeer a wholesaler an importer, where it is stored in warehouses which are open to the retailers who sell it in their shops.  Customers would then purchase the goods from the  retailers sales wholesaler revenue. This would be appropriate for a Londis or local grocery shop, who they might buy the goods in bulk from the local Costco, Bestway or other wholesaler. Some manufacturers prefer to deal with just a few wholesalers and sell in larger quantities or they may sell to a wholesaler as well as many retailers.  The added benefit of a wholesaler is they can offer trade credit terms to the small retailer.

  1-stage 7-stage 3-stage 4-stage distribution means that the product leaves the manufacturer and is then delivered straight to the retailer.  The customer can then purchase the product direct from the retailer.  Products like cars and motorbikes are sold at   shopping centres dealerships parks  wholesalers , which are the retailers in this channel.  Most manufacturers like to sell to a retailer. As the retailers are spread all over the country it gives the manufacturer the distribution and volume of sales they are looking for.

2-stage distribution means that the goods are purchased by the consumer from the   merchandiser maker company manufacturer . Many small online stores work this way; lots of small artisan workshops and craftspeople on Esty sell their handmade goods directly to the public. On a larger scale the Next Directory allows customers to buy directly from the company without the need to visit a store. 

  Onboard Onset OnionsOnline distribution means selling via the Internet, which will cut the overheads of the business and add the value of convenience to the customer.  The main benefit of the Internet is that  niche ninth ninja naval  products can reach a wider audience, e.g. low barriers to entry as set-up costs are small.

A business will decide which distribution channel will be the most appropriate for their goods and this will depend on   one thing only the entrepreneur  the retailer a number of factors .  The business should consider the nature of the product or business, the norm for the industry and the size of the business.