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Channels when selling consumer products, Relationship between producers…
Channels when selling consumer products
Direct Marketing Channels
Sells products directly to customers.
Advantages:
Set up a direct relationship with customers.
Have the customer's data.
Manage the customer's experience.
Disadvantages:
High costs.
Organizational difficulties.
Retailers
Sell to the final customers
Advantages:
High sales volume.
Producer, wholesaler, retailer, and final customers.
Advantages:
Convenient for producers that work with numerous retailers.
Small sixe retailers.
Including Agents
Advantages:
Helpful when a new product is launch.
Agents convince the wholesalers and retailers to sell the new product.
Relationship between producers and distributors
Information
Distributors have all the client's information.
Occasionally, distributors don't share information about end clients.
Financials
Isn't easy.
Discounts, prices for the end customer and payment terms are difficult to talk in most of producer-distributor relationships.
Logistics
Easier to agree in logistic issues.
Standardized procedure.
Ideal
Flawless.
Value eachother.
Share profits in a fair way.
Work together in the long run.
Reality
Complex.
Need willingness for concessions.on both sides.
Channels when selling industrial products
Direct Marketing Channels
Predominant sales channel for B2B.
High degree customization.
Direct contact with the customer.
Main concerns: risks.
Retailers
Producer, wholesaler, retailer, and final customers.
Including Agents
A link between producers and business clients.
Distributor and / or agent.
Video: 23.2 Types of distribution channels
Mía Mongilardi.