Similarly, a high-end makeup company will not want to store its products in a drug market, as this will reduce the quality of make-up in the eyes of the consumer. The consumer will not want to spend money on a good that does not match the quality of the desired price. The brand has a huge impact on the profitability of the products. Manufacturers should think about how they want to market their products and the impact that choosing a distribution channel can have on that brand. Selling through intermediaries is the second type of distribution channel. It is also known as an indirect distribution channel. Here, a manufacturer uses large retailers and retailers to make their product available on the market. Large retailers and retailers buy the product from the manufacturer and take the risk if the product sells poorly. Cooperation with large retailers and retailers is generally a key link in the distribution chain, as large and retail companies buy the product from the producer and therefore take the risk if the products do not sell well. Distribution channels not only influence price, they influence other marketing choices. A distribution decision could give the product a unique market position.
A distribution contract may be international. The largest distributors of electronics and computing, including Arrow Electronics, Avnet, Ingram Micro and Tech Data, operate subsidiaries in a number of countries for wide geographic coverage. The difference between the supply chain and the demand chain is a difference between internal and external operations. The supply chain involves, for example, the purchase of raw materials, inventory management and the movement of the product from production to the end customer. The demand chain focuses on creating demand for the product through the use of strategic alliances through distribution channels. This article gives you examples of successful strategies with different distribution channels and pitfalls to watch out for when selecting one or the other. The distribution channels a company uses are based on general objectives and structure. B2B and B2C companies must weigh the pros and cons of each channel before deciding which channel to use. If, as a manufacturer, you opt for this type of distribution channel, you should try to maintain good relationships with your wholesalers and retailers. Be sure to create a large base of wholesalers and retailers, as they can drop you at any time if your product is not sold well. You know how your retailer store is doing and discuss the link between their success and your products. Make sure they understand the profitability of your products.
Give them information about your product so they feel connected to the brand and always gather feedback.