| roduct distribution is one of the main element is | | | | set to specifically sell directly to wholesalers and |
| the marketing cycle after production, product | | | | even sometimes to retailers. |
| pricing and promotion. Distribution entails the | | | | Besides the traditional methods of <a href=" |
| movement of the product from the | | | | distribution</a>, e-commerce is emerging as |
| manufacturer or producer until it lands in the | | | | one of the modern and most effective way of |
| hands of the end users. | | | | distributing a product to loyal customers over a |
| In a distribution chain, when a product leaves the | | | | wide area, in most across the borders. |
| manufacturing site, it goes to the wholesaler who | | | | E-commerce has become a popular trend that is |
| then takes it to the retailer who finally distributes | | | | posting excellent development prospects for |
| it to the end users. Sometimes the product can | | | | international manufacturers. |
| go directly to the retailers, thus bypassing the | | | | Delivering a product to the market is one of the |
| wholesalers. | | | | best ways to retain loyal customers in the |
| Product distribution can also encompass the | | | | increasingly competitive market. Distributing the |
| movement of services for instance in the | | | | right product to the right clients at the right time |
| hospitality industry where hotels can rent their | | | | and place without any detail or damage allows an |
| rooms to travel agents, airliners, or tour | | | | entrepreneur to get ahead of the competition |
| operators. There are a number of ways an | | | | with ease without necessarily investing extra |
| entrepreneur can distribute his/her products and | | | | money in making the product more competitive. |
| services in the market. | | | | Most companies consider the product distribution |
| An entrepreneur can either use direct method | | | | as a noncore business. For them, the money |
| where one takes his product directly to his | | | | invested in creating a product distribution |
| customers using his distribution office. For instance | | | | department can be used in other areas in the |
| taking the product from door to door, or opening | | | | manufacturing process. Such companies have now |
| a retail stall where the customers can come and | | | | embraced the idea of outsourcing product |
| buy the product directly. | | | | distribution companies to carry out the distribution |
| An entrepreneur can also use the indirect | | | | programme on their behalf. |
| methods where he/she can use middleman like | | | | Outsourcing enables companies to cut the |
| wholesalers and larger distributors. In this method | | | | operational cost because the money they could |
| the entrepreneur sells the product in large | | | | have invested in creating distribution departments |
| quantities to the middlemen, who then 'breaks | | | | and other overheads can be used in strengthening |
| bulky', meaning that they sell the product in small | | | | the core business of company. |
| quantities to retailers who also sell the same | | | | Most outsourcing companies provide many other |
| product in even smaller quantities depending on | | | | critical services in the product distribution chain like |
| the end user preference. | | | | providing warehouses, distribution networks and |
| Many entrepreneurs use a multi-channel approach | | | | transportation. These companies offer customized |
| in distributing their products. They may use | | | | services that fits well to what a company needs |
| middlemen like agents, distributors, franchised | | | | so as to take the product to the market in a |
| chain stores and wholesalers while at the same | | | | cost effective way while preserving the quality. |
| time distributing using their own offices that are | | | | |