Although the principles remain the same, the practice of distribution has changed dramatically in the past 100 years, and even more so since the advent of the ‘Internet of Things’. A seismic shift has been the introduction of affiliate partners and programs in the strategy of distribution channel marketing and channel sales management.
It’s about bringing product to market
When life was a lot simpler, tradesfolk would bring their goods to a central market where the local villagers would come to either buy the goods or trade them for their own wares. The tradesmen would then return home with the revenue generated. The cycle would then repeat itself. As long as people had something of value, they could ‘get into the market’ to have their needs met.
Terminology
Although Marketing Channels and Distribution Channels are terms that are often used interchangeably, for the purposes of this article, they will be distinguished as follows:
- Marketing Channels refer to the entire ecosystem required for getting products (tangible goods and intangible services) from the point of production to the point of consumption; this includes people, organizations and all the required activities. Channel Management is defined as the process where the company develops various marketing techniques and sales strategies to reach its customer base.
- The Distribution Channel is a more focused term that refers to the chain of intermediaries through which the product passes until it reaches the end consumer.
