Tuesday, December 14, 2010

Place: Distributing your Product

Where should I sell my product?...Distribution is a difficult decision because it is important to do a lot of research to figure out where your target market is located and where they like to shop.  Distribution channels are a subset of the supply chain (getting finished goods to market). Marketers choose the right distribution channel for each target market within each specific geographic region.  Then, marketers price the product accordingly.  A warehouse store (long term storage) is a place where a distribution center sorts deliveries, then distributes the right mix to retailers. 



A good example of distribution would be Costco Wholesale.  Costco is a store that has a warehouse set up.  They must distribute their products in a timely and fashionable manner to catch their customers' eye to buy their goods.  Costco also has membership fees, so they must provide excellent customer service along with great products to keep customers coming back. 

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