In addition, the distribution strategy significantly influences other elements of the sales system.
Distribution strategy
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The development of sales methods is carried out on singapore business mailing list the basis of data analysis of various options for sales structures (type and number of intermediaries, their qualifications and motivation).
When developing a distribution strategy, the following should be taken into account:
the selected marketing system (vertical, horizontal, multi-channel or mono-channel), as well as the identification of potential conflicts and competition between distribution channels;
organization of the distribution channel structure, including the choice of the type of intermediaries, their number and distribution features. For example, exclusive dealer rights or wide distribution through many representatives;
features of product distribution (order processing, warehouse storage, inventory management and logistics).
Merchandise distribution, like marketing efficiency, is an area where you can either save on costs or incur unnecessary costs due to the wrong choice of distribution channels. In the context of the active development of digital technologies, new sales methods should be introduced when developing a sales strategy.
Commercial policy
Its main objective is to ensure the greatest efficiency of sales channels by creating and developing productive relationships with intermediaries.
Commercial policy is implemented by attracting partners, stimulating them and building forms of cooperation. It may include a number of elements:
methods of selecting participants in sales channels;
motivating channel participants: penalties and bonus system;
model for assessing the performance of distribution channels.
Pricing Policy
It is aimed at forming a pricing strategy within sales channels (wholesale, retail, distribution), which can be supplemented by bonus systems for end customers, wholesalers and distributors. At the same time, external factors such as sales volumes, level of demand and competition, size of inventory and aspects of assortment policy are taken into account.
Sales plan
Annual and long-term sales planning is carried out based on the provisions of cost, assortment and distribution strategies. A motivation program and KPI system can be introduced into the sales plan.
Sales planning, just like the company's sales strategy, serves as the foundation for developing a marketing plan.
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Stages of developing a sales strategy
The process of creating a sales strategy is complex. It consists of several stages that follow each other in a certain sequence and include a number of key actions. As a rule, work on a sales strategy consists of the following stages:
market research;
defining goals and setting objectives for the sales strategy;
identification of sales (distribution) channels and methods of managing them;
selection of the final form of the organization's sales strategy;
selection of partners and intermediaries, followed by the conclusion of cooperation agreements;
building relationships between participants in sales channels;
analysis of the company's sales system and control of its work.
The first step in the process of developing an organization's sales strategy is to research a specific market niche. At this stage, the market situation is assessed through an in-depth analysis of the factors that influence the intensity and volume of sales.
For example, the level of demand, its relationship with supply, price levels, regional characteristics, the size of the company’s market coverage, etc. can be measured.
Stages of developing a sales strategy
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The next step is to set the goals and objectives of the sales strategy. The key goal of such planning was described above. The goals of the sales strategy are closely related to the company's marketing activities, product range policy and the availability of the required financial resources.
The third step involves choosing a distribution channel. This involves determining how to manage it. An important aspect of the distribution channel is its level, which is determined by the intermediaries who help promote the product to the end consumer.
There is a separate classification based on this criterion. It includes the following types of sales channels: zero level (without intermediaries), single-level, two-level and three-level. The number of levels determines the complexity of the sales structure.
How to choose the optimal distribution channel? To do this, you need to analyze a number of indicators. The main ones here are costs, market coverage and control features.
Other indicators may also be taken into account: the size of investment in development, properties (key characteristics and compliance with the target market), the stability of intermediaries and their readiness for long-term partnership.
After analyzing various options, the company selects the most appropriate and effective distribution channel structure.
The fourth step involves developing the company's sales strategy. This is one of the most important stages in sales management.
The fifth step is related to the selection of partners and intermediaries. In addition, it is necessary to specify their number and type. There are two points to consider here. Cooperation with many small intermediaries helps the company maintain control and quickly respond to market changes, ensuring maximum coverage of buyers.