What is Marketing Distribution?

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Another way to position this question is, what are the means used by a company to move their product from the manufacturer to consumer? The distribution marketing’s primarily role is to provide a link between production and consumption of a given good or service. There are two general or primary forms of distribution, direct and indirect.

Direct Marketing

An example of direct marketing distribution would be a factory outlet store or a direct sales network marketing company. In both instances the product is distributed directly to the consumer from the manufacturer. This mode of distribution has its benefits to the consumer as it allows for discounted prices by eliminating the “middle-man”. This would include anyone who is in a multi-level company, an individual who is selling a product or service directly from their home to individuals or any factory outlet mall. The amount of products moved through this means of distribution is much smaller than the indirect method of distribution.

Indirect Distribution

This would account for any situation where the manufacturer sells products to a retailer and the retailer in turn sells them to the customer. Another example of indirect distribution includes an additional party. This is where the product goes from manufacturer to wholesaler, wholesaler to retailer, then retailer to consumer. In the indirect distribution channel you can see that with an increased number of parties involved each will get their “cut” thus making the cost to the consumer slightly higher. The trade off is often that the products are able to be acquired by the customer in a more convenient way. The consumer pays a little bit more in order for the products to be more readily accessible.

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Source by Matthew E Peterson