An organization’s market is restricted by the support needed for a product, both when purchasing and in its use. Market access is also restricted by customers’ action radius for a sales outlet.
Distribution channels increased the number of sales outlets and arranged support for purchasing the product. This manufacturers’ strategy led to the classic business model, where there was a sharing of tasks between producer, distribution, trade and shop. Trade’s task was to bridge time, place and quantity and to mediate between manufacturer and sales outlet. Producers used the trade and a distribution network to get the products to the buyers. Producers focused on getting products and services to the market (classical marketing), while the retailers worked towards sales based on transactions. A producer’s focus was thus on a good distribution network and good communication with the market. This classic model has come under pressure, however, because of the Internet. There is a trade-off between the richness of a product and the market reach (Figure 17.1).