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← Distribution Channels Overview - How to Build a Startup

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Showing Revision 3 created 05/25/2016 by Udacity Robot.

  1. So one of the best ways to understand channels is to think about how business first started.
  2. We first started distributing and making physical products--cars, food, utilities, etc.
  3. and we distributed them through direct sales force--that is people
  4. you shook hands with, look in the eye and met.
  5. And it wasn't until the mid-20th century when we actually started selling virtual products--
  6. things that didn't quite exist physically like insurance, stocks and bonds, enterprise softwares,
  7. shrinkwrap software start to be distributed through physical channels but they didn't exist in the real world.
  8. But it wasn't until the mid-1990s with the emergence of the Internet that
  9. we were able to distribute physical products through a virtual channel.
  10. Think of Amazon or Zappos or Netflix--even consumer electronics sold through the web.
  11. And what's happened in the beginning of the 21st century is we now have products
  12. that don't exist at all--Facebook, Twitter, Google--they're all bits,
  13. and they're also distributed via the web.
  14. This virtual virtual distribution channel allows for easier customerization, optimization,
  15. and allows you to change both product and channel almost on the fly.
  16. Through the rest of this lecture, we're going to show you which channels might be optimum
  17. for your startup and allow you to chose which one to pick.