Distribution Systems

When settling on a design for its distribution network, the marketer may have several potential options to choose from. We stress the word “may” since while in theory an option would appear to be available, marketing decision factors (e.g., product, promotion, pricing, target markets), infrastructure limitations, or the nature of distribution channel relationships may not permit the marketer to pursue a particular option. For example, selling through a desired retailer may not be feasible if the retailer refuses to handle a product.

For marketers, the choice of distribution design comes down to the following options:

  1. Direct Distribution Systems
  2. Indirect Distribution Systems
  3. Multichannel or Hybrid Distribution Systems
Relationship Issues in Channels
Distribution Systems: Direct