The importance of distribution channels

    

 By Raúl Gorrín.- An excellent company that develops the best of products and / or services is not availing if they can’t reach the markets and, consequently, the customers. In order for these goods to reach the consumer's hands it should have good distribution channels, which are nothing other than the channels that serve as a connection between customers and producers.

     To establish a channel distribution is definitely a task that should be developed in conjunction with all areas of the organization. During the stage design of the distribution channels, the levels’ number involved, should be established since they are traditionally the manufacturer, the wholesaler, the retailer and the customer. The customer will be decisive when defining the most appropriate distribution channels to reach it properly. It is necessary to take into account the market which they belong, the demographic and psychographic elements to be able to make the decision that corresponds.

    

You have to ask yourself why you buy the client? How do you buy it? And where do you buy it? Also, culture is a factor to be taken into account, since it is not the same to sell in Western society as it is to do in Eastern society. Therefore, the forms, the distribution channels in every case, will vary according to the characteristics of each group. Likewise, the goals of the company will be decisive in the choice of the distribution channel, since it will have to achieve the goals established by the organization.

     The nature of the product it is an important factor at the moment of defining the distribution channel. It is necessary to take into account the value of the product, its size, if it requires refrigeration, if it is fragile and needs special care, if it is perishable or imperishable and many more aspects. Of course, these aspects will have a different impact on distribution costs.

     The areas’ number to be covered with the product and / or service will be related to the demand dispersion and the time that goes by the moment that leaves the factory until it reaches to the consumer. The distribution frequency is important to determinate the distribution channels of goods and as in all processes, communication will play a key role for the good operation of the distribution channels.

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