Mini Program Secondary Distribution

The distributors and marketers have to understand the concept of marketing with the channels of distribution. There is a need to know different types of flow in the distribution channel so that the customers can buy them easily. Before you know 5 different flows in the distribution channel, you need to understand the meaning of the model. What does secondary-tier distribution mean? If you want to know about it, you need to check out the following information. 

In the distribution, the retailers will procedure the products from the wholesalers. The wholesales will get products from the manufacturing companies. So it will form a supply chain to sell the products and services to the final consumers. So there is a need to understand it if you want to know about the five flows. 

1. Physical flow of the products 

One of the main flows is the physical flow of the products. The movement of the goods is physically from the production company to the final consumers. It will include different products in order to reach the potential ad ultimate consumers. Apart from it, the participants of the flow will get physical possession of the products in the channel. It is the main flow that offers the products to the end-users. 

2. Title or ownership flow 

Along with the physical flow, there are some other flows also in the channel of distribution. It includes the transferring of the title or ownership of the goods from an intermediary to another. So, the flow will involve the movement of the owner along with the goods. The final owner of the products is the consumer. 

3. Promotion flow 

In the promotion flow, the channel partners will put efforts into the promotion of the products and services. There is the use of different tools and techniques for advertising and sales promotion. As a result, the wholesalers will get incentives and prizes along with the bulk discount in the buying of the products and services. 

4. Information flow 

In the distribution channel, there is flowing of the information from both upward and downward form. It is of great importance for the better marketing of the products and services. So, it is an integral part of the second-tier distribution channel that you need to know. The interaction between the staff and other members is excellent for selling the products. 

5. Monetary flow 

Lastly, you should learn about the monetary flow. It is the procedure in which the movement of the goods is from the producer to the consumers. On the other hand, the money flows in a reverse way. The flowing of the channel is towards up for benefitting the consumers and the production company. Therefore, the collection of information about them is essential for learning about the channels. 

Thus, these are the five main flows of the channel that you need to know for the movement of the goods from the producers to the final consumers.