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Distribution Since the introduction of the World Wide Web in 1990 it has grown from a means of communicating for physicists to having more than forty million users This tremendous growth and interest in the Internet can only mean that great opportunities lie ahead for companies and their products Digital marketing is changing how businesses are able to get their product to the consumer It is allowing the channels of distribution to become shorter In order to understand the channels of distribution and how they are becoming shorter the concept must be explained The traditional channels of distribution consist of the product producer wholesaler retailer and the consumer This means that first there is a product Then there has to be someone to produce the product The product is usually produced in mass quantity Then the wholesaler purchases the product from the producer and then sells it to the retailer at an increased price The retailer then advertises the product to promote it to the consumer The retailer also sells the product to the consumer at an increased price This process makes for very long channels with increased costs of the products Digital marketing has changed the flow of distribution channels It has done this by allowing the channels to become shorter Products may pass directly from the producer to the consumer via a digital marketer This means that instead of having multiple channels in distribution there might just be three Producer virtual marketer and consumer It could also be just producer and consumer Kleindl Brad 199610 One of the ways that digital marketing can shorten the channels of distribution is by eliminating the retailer and the intermediate wholesaler The producer will be able to deliver the product directly to the consumer with the help of the digital marketer and the shipper of the product This means decreased time periods and also allows the producer to produce the product
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