Page 87 - Customers Final

FROM IMAGINATION TO SUCCESSFUL PRODUCT LAUNCH

OEM (Original Equipment Manufacturer) – you sell to
a customer who turns your product into a bigger part
such as a car or a bicycle.

Distribution Channel

Distribution channels are used to achieve your promise
of supplying a product to a customer. In other words,
how you deliver your product to your customer.

The easiest way to explain the difference between a
sales channel and a distribution channel is that you

would generally use a 3rd party in a distribution channel.
Different sales channels will have their own distribution

channels to physically get the product to the customer.
They could even outsource and give this function to a
third party or somebody else to get the product to the
customer.

There are basically four types of distribution channels

Direct, for example, where you distribute from your own
shop or door-to-door distribution. This is where you as

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