If you are an “old man” in the Marketing industry, the term Distribution will be an unfamiliar term. Because understanding the true nature of Distribution can help businesses effectively distribute products to consumers. However, as a “newbie”, you probably won’t be able to fully understand the importance of Distribution for business marketing activities. To have an overview of this issue, let’s find out with Unica what Distribution is through the article below.
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What is Distribution?
By translation, Distribution is allocation. In Marketing, Distribution is understood as business activities that both sell and provide products, and translate from manufacturers to customers. Or can be briefly understood as product distribution. As businesses want their products to reach a wider audience and go global, it’s important to improve distribution channels to ensure that customers and all members of the distribution team are on the same page. feel satisfied. Depending on the type of distribution, it may be possible to involve more than one person in the process.
Distribution is understood as distribution
The Importance of Distribution
It is undeniable that distribution plays an extremely important role in business activities because it is the bridge to maintain and improve the relationship between producers and consumers. Because if in the process of distributing products and services to customers, if there are some situations such as: congestion in circulation, shortage of delivery, etc., it will make customers and retailers feel very uncomfortable but lose faith. Therefore, for the distribution of products to be truly successful, the distribution process must be strictly controlled, taking place on schedule to ensure that customers always feel confident and satisfied.
In addition, through different distribution channels to customers as well as retail suppliers, it will be easier for businesses to control and adjust the expected output to meet the needs of customers. customer.
Distribution channels in Marketing
After explaining what Distribution is, invite readers to learn the main distribution channels in Marketing through some of the points below.
The distribution channel is the bridge between the customer and the manufacturer
Direct distribution channel
Direct distribution is considered a very useful form of distribution to sell any kind of product at an average price, without daily purchases and with a long shelf life. Some popular items can be mentioned such as: clothes, stationery, air purifiers, jewelry, etc.
Direct distribution means that the manufacturer finds a way to communicate directly with the customer without using any middlemen, but does the trading, packaging, shipping and shipping tasks on its own.
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Indirect distribution channel
This is the form in which the producer will choose to work with dealers or brokers. This form means that the manufacturer will decide to directly assign part of its duties to the intermediaries.
A specific example can be taken as follows: In the food industry, Before entering into a contract with a broker, the food producer will have to supply the produce shops himself. And that is often the case with smaller vendors. However, as their business expands, they will look for alternatives to have their products shipped to their stores. That will be done by a broker (or even an intermediary) to handle the sale, or a distributor, who will take care of shipping the goods to the stores in multiple locations. Differences.
Through the above example, it shows that, for the indirect distribution channel, the biggest advantage is that it helps businesses save a lot of time and costs for hiring labor as well as the transportation process.
Wholesale/retail distribution channel
The distribution of products by businesses to wholesalers and retailers is a preferred form because wholesalers and retailers who buy products from manufacturers will bear all risks if their products not selling well. The advantage of this form is that consumers as well as the wholesale and retail system can be completely assured of product quality because the manufacturer will provide accurate and transparent information about the product. products they are offering.
Electronic distribution channel
In the era of social networks that are developing and booming, when it comes to electronic distribution channels, readers will immediately think of the Internet. Simply put, this is a form of buying and selling products through some popular social networks to help customers save a lot of time. Taking advantage of that, this form is chosen by businesses to be able to interact with customers, thereby promoting and marketing their products.
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So, through the above article, Unica has worked with you to find out in general what Distribution is and popular distribution channels in Marketing. We hope businesses can be flexible in using different distribution channels to be able to connect and meet the needs of customers.