The business entity, having produced the products, must form a certain marketing policy, the immediate task of which is to bring the goods to the final consumer. As a result of marketing research of the market, the most optimal scheme for the delivery of goods to the buyer should be developed. It includes numerous elements of transportation and storage, as well as product processing. The scheme for bringing the product to the final consumer should contain an element of service provided immediately after the sale of the goods.
The key issue of marketing research is the choice of distribution channels. These schemes of product delivery to the buyer have differences.
Distribution channels - these are the ways in which the movement of goods from the manufacturer directly to the final consumer. Organizations or individuals involved in the movement of goods perform a number of functions. They are the following:
- distribution, collection of marketing information ;
- sales promotion ;
- establishing contacts ;
- fitting the product to the requirements of customers (packaging, assembly, sorting);
- negotiations;
- movement and storage of goods;
- financing the normal operation of the channel.
Any way to promote a product is characterized by the presence of several streams:
- physical products;
- ownership of the goods;
- payments;
- information;
- the movement of goods.
Distribution channels related to the field of services are characterized by the movement of intangible products (knowledge, ideas, etc.). The methods of moving goods are classified by the number of their levels, each of which is any intermediary that brings the goods closer to the final consumer.
Distribution channels will be divided into three types. These include:
- direct;
- mixed;
- indirect.
Direct channels of distribution of goods ensure the delivery of products from the direct producer to the consumer (final), bypassing the services of intermediaries. Widespread this way of implementation on the Internet. This is determined by the fact that companies provide services (information, in the field of gambling, etc.) that are easy to implement with the participation of a computer.
Direct distribution channels are characterized by a number of features:
- a small volume of goods sold;
- close contact between the manufacturer and the consumer;
- flexible prices;
- excellent knowledge of information about the goods being sold;
- stable financial position of the manufacturer;
- wide opportunities for technical service of products sold;
- obtaining higher profits from sales;
- informative and quality customer feedback.
Indirect channels of distribution of products provide for the initial movement of goods from the direct producer to the intermediary. And only after that to the end consumer. This method of implementation is typical for firms that reduce sales costs, gain access to new markets, but at the same time go to weaken direct contact with the buyer.
The characteristic features of indirect sales are:
- high volume of sales;
- low level of contact of the direct manufacturer with the buyer;
- less flexible pricing policy;
- the lack of sellers of sufficiently complete information about the quality of the goods;
- weaker financial position of the manufacturer;
- low opportunities for technical maintenance of goods;
- getting less profit from sales.
Distribution channels related to the mixed type combine the characteristic properties of indirect and direct sales channels.