Strategy Of Distribution Case Study

A business’s strategy of distribution can have major effect on business operations and further emphasize a business’s capability to expand and welcome advantages as well as pitfalls. In order to make sure a product or service is being utilized to maximum potential in regards to customer satisfaction, distributors must have an appealing strategy. Selling products to both business customers and consumers allow the opportunity for expansion leading to more sales, customers and product recognition. These advantages of selling to both business customers and consumers expand the product into new markets. However, without a suitable strategy there are some risks that may harm the business through a decrease of sales and revenue, which can also affect …show more content…
Business to business sales have advantages for a product through the fact of loyalty, as a business is more likely to be a continuous buyer of that product as it may be an essential need. In which case the product will have frequent sales and revenue through supply and demand of businesses. This can also be an advantage through the fact of that business allowing free advertisement for the product due to the product being more visible to the open market and also allowing word of mouth from business to business, which ultimately benefits the product through sales, revenue, and through the fact that not much effort is needed to communicate towards a business and market the …show more content…
A pitfall may include that communication for both markets will be harder for the brand to accomplish due to both having different uses of the product which affects the products ability to apply a marketing strategy that utilizes both markets effectively. While selling to both markets, focus and priorities for the marketing strategy may get mixed up and cause issues within the brand. Another potential pitfall for selling a product to both markets could be the fact of competition. For example, if Apple sells their phone chargers to Woolworths for resale, Woolworths will have similar products on sale from another brand, which causes competition through price and quality. Another pitfall could be pricing as selling to business involve price changes rather than selling direct to consumers, which can effect the consumers decision making and buying power. Selling a product to both markets also include pitfalls such as the product not being unique to the consumers, which may affect the brand image and loyal customers, which can ultimately decrease sales and