How products and services are distributed in the target market should be clearly depicted in the Business Marketing Plan. Different distribution channels will be having different cost and the extent of complexity. While selecting a specific marketing channel an MBA Executive should match the goals to the distribution channel.
Choosing the direct distribution channel helps in gaining access to customers and keeping the profits under the control of the business organization. Through direct selling methods the selling cost can be determined by doing the research about the targeting market and choosing the target customers. However there is a disadvantage of this as the main focus will be utilized for research of the targeting market.
If there is a shortage of time and increase in production volume then the best way is to go for wholesale marketing for distribution without further doing research on the end users. This is especially useful if the users of the product are located away from the place of operation. As the products are sold to retailers and wholesalers the sales will be uniform due to the research was done by retailers. However, only a part of the profit will be obtained as retailers take the majority of the profit.
Another option of distribution of the product is the mail order facility. Most of the sales occur through the emails sent or the classifieds published through various mediums. Targeting the right demographic group is the key point in marketing through such distribution channels.
