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Distribution (marketing)

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Distribution in marketing refers to the process by which a product or service is delivered to the end customer[1]. This process involves various strategies, such as intensive, selective, and exclusive distribution, and can utilize different channels, such as wholesalers, retailers, and importers. It’s also important to manage and motivate the intermediaries involved in these channels to ensure efficient delivery. Currently, trends like e-commerce growth and multi-channel retailing are reshaping distribution processes. Furthermore, the concept of disintermediation, or the removal of intermediaries, has emerged, particularly with online shopping trends. Finally, regulations, such as the Insurance Distribution Directive in the EU, play a crucial role in shaping distribution practices. Understanding and complying with these regulations is essential for companies, especially those in the insurance industry.

Terms definitions
1. customer.
1 The primary entity in this text is the "customer. A customer is an individual or entity that purchases goods or services from a business. They are crucial participants in the commercial landscape, forming relationships with businesses through transactions. Customers can also be classified as 'clients,' especially when they receive tailored advice or solutions from a business. The term 'client' originates from Latin, implying a sense of leaning or bending toward a business. Customers vary in types - from end customers who directly buy products or services, to industrial customers who incorporate these goods or services into their own offerings. These customers can have different relationships with the business, such as being employers in construction projects. Businesses often segment their customers into different categories, like entrepreneurs or end users, to better understand and serve them. The understanding and management of customer relationships is a critical area of study and practice in business.
2 The primary entity in this text is the "customer. A customer is an individual or entity that purchases goods or services from a business. They are crucial participants in the commercial landscape, forming relationships with businesses through transactions. Customers can also be classified as 'clients,' especially when they receive tailored advice or solutions from a business. The term 'client' originates from Latin, implying a sense of leaning or bending toward a business. Customers vary in types - from end customers who directly buy products or services, to industrial customers who incorporate these goods or services into their own offerings. These customers can have different relationships with the business, such as being employers in construction projects. Businesses often segment their customers into different categories, like entrepreneurs or end users, to better understand and serve them. The understanding and management of customer relationships is a critical area of study and practice in business.

Distribution is the process of making a product or service available for the consumer or business user who needs it, and a distributor is a business involved in the distribution stage of the value chain. Distribution can be done directly by the producer or service provider or by using indirect channels with distributors or intermediaries. Distribution (or place) is one of the four elements of the marketing mix: the other three elements being product, pricing, and promotion.

Warehouse storing granite at South Jersey, a U.S. East Coast epicenter for logistics and warehouse construction and distribution to market to the Philadelphia metropolitan area and beyond

Decisions about distribution need to be taken in line with a company's overall strategic vision and mission. Developing a coherent distribution plan is a central component of strategic planning. At the strategic level, as well as deciding whether to distribute directly or via a distribution network, there are three broad approaches to distribution, namely mass, selective and exclusive distribution. The number and type of intermediaries selected largely depend on the strategic approach. The overall distribution channel should add value to the consumer.

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