In the age of new media marketing, distribution channels have changed dramatically. Before the Internet and digital marketing, marketing channels were linked between manufacturers and end users. Simple. These did not include the channels in the pre-manufacturer stage or beyond the end-user.
It Takes a Network
Today’s approach to the marketing distribution process often combines a network of organizations and people that facilitate the marketing exchanges in a more detailed, nonlinear way. It’s not as simple as manufacturing a product and putting it into a consumer’s hands. Distribution channels today have adapted to include more efficient and specialized partners in the distribution process.
Distribution Channels Are the Backbone
Since distribution channels are the backbone of marketing, it’s important to understand the variety of channels and their functions. Here are SOME product distribution channel functions to be considered nowadays:
• Product Acquisition
• Product delivery
• Product Disposal
• Product storage
• Import/export management
• Research
• Display channels (such as retailers)
In addition to these there are also:
• Financing
• Sales
• Pre- and post-sale customer service and support
This partial list shows how marketing distribution channels have adapted and specialized to become more efficient and effective. Each channel strives to excel in its role to lower costs and bring value to the marketing exchange. Of course,
“Profitability depends on how efficient and effective each of these channels performs.”
As these networks of distribution channels specialize in their respective functions, their efficiency and effectiveness improve. This adds value to the entire distribution process and creates a strong backbone for marketing exchanges between manufacturers, end-users, and the multiple channels in their networks.
—Robert Vergara
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