When required, we marketers should not hesitate to move from one distribution channel to the others. Because every product has to pass through certain phases of its life cycle(i.e. introductory, growth, maturity and decline), each phase brings new challenges hence needed to be dealt accordingly.
Selecting Distribution channels according to product life cycle
Product Life Cycle Stage and General Strategies for choosing a channel
Introductory Stage Product has recently been launched; hence there will be fewer distribution channels.
Strategy: You may be able to accept any intermediary, which is capable to paying any product you produce. At this stage You should try to convince them to carry your product
Growth Stage
Product has gained has its acceptability; hence more distribution channels will be added.
Strategy: More resellers will be interested, so you should move on to develop an appropriate criteria, policies and procedures that should help you to choose which reseller suits the most, here you would be executing an intensive distribution strategy
Mature Stage
Product has been embraced, but competition is a threat. Primary goal should be to maintain market share
Strategy: If your product lies at mature stage, you should Offer reseller discounts, include additional marketing channels to add convenient shopping, like catalogues, internet shopping, offer coupons e.t.c.
Decline Stage
Product has been embraced, but competition is a threat. Primary goal is to maintain market share
Significance of adopting a suitable distribution channel
It is important to select appropriate channel, because the distribution channel we select can determine the Level of success our organization achieves. Incase of retail items like T.V or DVDs, Those Intermediaries that use poor promotional techniques or are unable to keep up with consumer demand can damage our products marketability and sales. Having said that, it will be adequate to mention various factors that should be considered while selecting a distribution channels
- The size of target market
- Where the target market is located
- The details of buying habits of the target segment
Only, after having above information, one could adopt a suitable strategy that would guarantee success.
