What is a distribution network

A sales network is a route through which a product or service is transferred from a producer to a consumer. The profit and turnover of the manufacturer depend on how well organized this route is.

Purpose and types of distribution network

Despite the fact that the concept of a sales network has a clear description in the economy, in practice, each manufacturer builds its sales system. It depends on the characteristics of the product, the scale of the business, market opportunities. A properly built sales network will provide the buyer with the opportunity to buy goods at any place convenient for him, and the manufacturer will give a steady increase in the level of sales of his product. An effective sales network is a network of wholesale and retail stores, warehouses, warehouses, trade and exhibition venues. Today, there are three types of distribution networks.

Own network is a sales system organized directly by the manufacturer of products at the expense of own resources. They can be located in different economic regions of the state.

The largest market for Arrl products in 2013 was China. IPhone sales growth since 2010 in this country exceeds 100% annually.

An independent, agent or dealer network involves the conclusion of contracts between the product manufacturer and companies capable of ensuring its implementation. This can be supermarkets, warehouses, small retail outlets, specialty stores, dealers organizing branded points of sale of a particular brand. The reliability of such a sales network depends on the quality of partner companies and their business reputation in the market. An important role is played by the terms of the contract between the manufacturer and seller of the products.

The largest retail supermarket chain in the world is Wal-Mart. It was founded in 1962. This is 10 thousand stores in 15 countries. Wal-Mart is the largest private employer in the world with more than 2 million employees.

A mixed network is a synthesis of the previous two. This form of marketing involves both the presence of its own departments and the representation of goods in partner stores.