Product Marketing Strategy helps manufacturers with product marketing, product strategy, and marketing strategy to maximize profitability over the product life cycle.

Posts Tagged ‘power’

Channel Strategy

Jul 02 2013

Distribution Channel Power in Pittsburgh, PADistribution Channel Power should be a huge factor in your channel strategy and tactics. Whether your product is sold through a single channel or multiple channels, it is critical that your channel strategy is developed with a full understanding of where the power is in each channel of distribution.

From the 1940’s up to the late 60’s or early 70’s, there was more demand for product than there were supplies. In that situation, it was apparent that the manufacturer had the power in the channel. By the late 70’s and all of the 80’s, supplies exceeded demand and the power shifted to the distributors. During this same time frame, manufacturing consolidated and selective distribution faded. The remaining manufacturers wanted to and did sell to every distributor. By the 90’s, power in the channel shifted to the Retailer. Like the previous change, this resulted in the consolidation of distribution.

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head-and-sholders  Robert Cannon

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