Distribution Models
A distribution model is the manner in which goods move from the manufacturer to the outlet where the consumer purchases them; in some marketplaces, it’s a very complex channel, including distributors, wholesaler, jobbers and brokers.
Often, your choice of a distribution plan will be dictated–or at least strongly influenced–by various factors relating to your product, your customers and the way they’ll use it. For instance, if your product–or the new one on which you hope to build your growth plan–is perishable, then the need to provide refrigerated storage and transport will significantly restrict your choices of distribution methods. Size is another issue. If your product takes up a lot of display space, this consideration will weigh heavily when you’re selecting ways to transport and display it. That’s why automotive dealerships are usually located outside central business and shopping districts, where costs for display space for cars and trucks would eat up profits.
