REEVALUATION OF DISTRIBUTION CHANNELS

Finally, in the transition to maturity, most manufacturers begin to reevaluate their wholesale prices with an eye to reducing dealer margins. There is no need in maturity to pay dealers to promote the product to new buyers. Repeat purchasers know what they want and are more likely to consider cost rather than the advice and promotion of the distributor or retailer as a guide to purchase. There is also no longer any need to restrict the kind of retailers with whom one deals. The exclusive distribution networks for Apple, HP, and even IBM have given way to low-service, low-margin distributors such as discount computer chains, off-price office supply houses, warehouse clubs, and even direct sales websites. The discounters who earlier could destroy one's market development effort can in maturity ensure one's competitiveness among price-sensitive buyers.

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