Sales channels to reach your customers
Selling through retailers, wholesalers and other distributors
Selling through an intermediary may be a more cost-effective way of reaching your end-customers than selling to them directly.
If you are targeting business customers who prefer to deal with large suppliers, selling directly to them may not be a realistic option. Instead, you might aim to supply wholesalers who have existing relationships with those businesses.
If individual consumers buy low value quantities of your products, the best option might be to target retailers that sell similar products. Or you might choose to focus your efforts on a relatively small number of wholesalers who can in turn supply your products to many retailers.
Other distribution channels may also reach your end-customers. For example, technology suppliers often sell to resellers who can configure and install the technology to suit end-users’ particular needs.
Managing your distributors
You need distributors who will value your product. If they sell competing products, what will make them push yours?
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Think about how you set your prices. Distributors will be more enthusiastic if they can make a large profit – but setting too low a price will eat into your own margins.
Effective advertising and promotions can be vital. As well as marketing to the distributor, you can promote your products directly to end-customers. Distributors will be keener to stock and sell products that their customers are asking for.
The key terms of the supply relationship should be covered in a written contract. Key issues might include:
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how much stock the distributor will hold
what the distributor will do to promote your products
how quickly you can resupply and minimum order levels
whether the distributor has exclusive rights to your product (for example, in a particular territory)
what happens if either you or the distributor want to end the relationship
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List of interesting and contemporary topics
1. Blogs for Marketers: We have seen that 26% of CEOs in US use blogs and many marketers are using it as a powerful as mentioned in many of the articles. Is the hype justified? Can blogs ever replace TC commercials?2. Niche Marketing: We have seen that marketers these days are targeting a specific set of people having a specific need. But they get apremium for this. Can these niche players be able to stand against mammoth players?3. Industry Convergence: As product spaces become modularized, componentized, and compartmentalized to address the individual, customized, targeted needs of markets, the correspondent market space, and the value chains in them become more integrated. In a sense, products become disintegrated while markets become integrated. The future belongs not only to the convergence of devices, but also to divergent (i.e., specialized) devices.4. Private labels vs Brands: Right now 1 out 5 brand sold in US is a private label. Is this ratio going to increase in future with effecient SCM by big retail giants?5. Internet Marketing/ Email Marketing: Are marketers still spending money from their advertising budgets on it?Which one is the most inn one?
