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What are Channels of Distribution?
There are 4 Ps in marketing i.e., product, price, promotion and placement. Placement can also be called as channels of distribution. A distribution channel can be defined as chains of intermediaries through which a good has to pass before it reaches its end customer. These channels can include different types of medium like, retailers, wholesalers and distributors. In present days even internet can play an important role here. Products can be sold to the end users directly, through a dealer network or through a value added reseller.
How to create a successful distribution program?
Distribution channels should be created considering the preferences or requirements of your users. If your users prefer personalized services, local dealers or resellers can be contacted; if your users prefer direct services, companies own sales team can be created to strike deals with customer directly; if users prefer to buy online, a company can create its own e-commerce website or else can sell to online retailer that can offer those products on their own sites.
Certain steps are required to be followed while setting up distributional channel: learn about the requirements of end-users; match their requirements with your distribution strategies; identify those companies with whom relationships can be grown to reach out users; While building up distributional channels carefully plan out the cost at every stage. However, to understand process of distribution in more details, approach Channels of Distribution Assignment Help professionals.
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