Define Distribution Tier Structure for Marketing

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"Distribution tier structure" refers to a strategy where manufacturers provide their service to the end user or the consumer. Find out more about distribution tier structures for marketing with help from a director of online marketing in this free video clip.

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Video Transcript

Hi I'm Angela with How do you best define a distribution tier structure for marketing? A distribution structure is the overall strategy that manufacturers use to provide their service to the end user or the consumer. A structure may also be referred to as a marketing channel and this again is the method that the manufacturer is using to get their product or the service to the consumer. Now this structure can either be two or three tiered or it can be a hybrid which is a mix between the both. A two tiered structure is where the manufacturer provides the goods or services to the consumer but through a retailer. A three tiered structure places the retailer and the wholesaler between the manufacturer and the customer. Now any additional tiers or hybrid structures, it all depends on which the manufacturer chooses but this can include sellers and distributions. Companies that want to improve their distribution structure and stay competitive, they usually move from higher tiered structure to a two or a three tiered structure. This reduces the number of interactions, it makes the manufacturer more efficient and it also reduces cost. So that's how you would really describe a distribution tier structure for marketing. This has been Angela Kelly. Thanks for watching.


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