Week 5: Distribution Marketing

 Distribution Marketing:

Distribution marketing is defined as the method in which businesses make their goods and services available to consumers. In the four P's of marketing (product, price, place and promotion), distribution is a part of the "place" category. Many marketers consider location in terms of where they promote their goods and services. However, they should also understand where buyers make their ultimate buying selections.

Direct Distribution

• Direct distribution approach that uses a direct-to-customer technique. This is when the producer controls all elements of distribution.
• There is more control over the process of distribution.

Indirect Distribution

• Indirect distribution approach uses intermediaries to fulfill the distribution functions for the producer. Third parties would include warehouses, wholesalers, and retailers.
• There is more focus on their primary business when outsourcing the distribution to others. 

Examples of Direct vs Indirect Distribution

• Direct Distribution
• Farmers Market: The consumer is purchasing products directly from the consumer, which in this case is the farmer. 
• Indirect Distribution:
•  Samsung: The producer of Samsung products outsources their distribution. Their products can be purchased from third parties like AT&T, T-Mobile, and BestBuy.