Distributor/Reseller Marketing: A Riddle Wrapped In A Mystery Inside An Enigma.

Distributor/Reseller Marketing Over the last 50 years, changes in distribution occurred at a snail's pace. However, over the past five years, and more significantly in the next five years, changes in distribution will be fast and numerous. Marketing through distributors and resellers is complex enough, but those companies that have not developed a clear understanding of the basics of "channel marketing" will likely experience declining revenue and market share.

Distributor/reseller marketing is more complex today because:

The emergence of electronic commerce challenges the underlying rationale for distribution channels

Distributors are investing heavily in electronic commerce and other technologies to offer better online systems and lower cost structures

Integrated supply contracting is changing the relationship between manufacturer, distributor and end user

Outsourcing of logistics functions is emerging as an alternative to direct fulfillment or traditional distribution channels

Hybrid solutions that combine direct and distributor activities are now very common

Despite the increased complexity of distributor/reseller marketing, manufacturers are being forced to answer the question, "How do we more effectively and efficiently market our products through distribution?" Answering this question has become increasingly important because:

Most U.S. businesses have directed their purchasing departments to drastically reduce the number of suppliers with which they do business. This trend favors the use of distribution over direct selling

Large distributors have gotten large through mergers, acquisitions and consolidation. The investments they have made have significantly lowered their costs of operation, making them very efficient marketers

Conflict between channels is greater than ever with more channel options available

New channels, including integrated supply contractors, electronic commerce, catalog and even retail superstores, require different support/investment from the manufacturer

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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