Types of distribution
Posted: Sun Dec 22, 2024 9:02 am
Distribution is classified according to various criteria.
According to the length of the channels (that is, according to the number of intermediaries), the following are distinguished:
long distribution. This refers to the presence of a multi-level chain of intermediaries for the sale of goods. It is usually organized with the participation of several specialists. In this case, the delivery cycles of goods can be extended, for example, due to complex international logistics or the need to deliver to remote areas;
short distribution . It is carried out through indonesia email database one or two intermediaries. This type of distribution is much simpler than the previous option.
By the way of interaction with consumers . Small businesses do not have to pay for distribution services, while large companies have no choice. Thus, two main types can be distinguished:
direct - the manufacturer delivers the products independently;
indirect - intermediary enterprises appear between the seller and the buyer.
By degree of exclusivity. Depending on which distributor the manufacturer cooperates with, several types of distribution can be distinguished:
mass . This option is used for goods that can be distributed simultaneously through various retail outlets - from large shopping centers to small local stores;
selective . Applicable to products that occupy a specific market niche (for example, automobiles);
exclusive . This is the distribution of goods that can only be presented on the market by one official distributor or retailer.
Depending on geography, there are three varieties:
regional - distribution of goods in the region where they are produced;
national - sales of products in different regions of one country;
international - goods are delivered outside the country of manufacture.
Types of distribution
Source: shutterstock.com
Depending on the distribution goals, the following can be distinguished:
quantitative , where the main objective is to reach as wide an audience as possible in order to sell a larger number of products;
qualitative , which focuses on a deeper understanding of distribution channels and specific target audience segments;
point (drip) , in which the main attention is paid to the development of supplies to certain retail outlets.
In addition, digital distribution (content distribution) can be distinguished. This approach is relevant for the distribution of video games, computer and mobile software, films, music, video clips and e-books.
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"How to get contacts from a client: the most effective methods"
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Distribution Strategy Indicators
To ensure that your distribution strategy is aligned with your business goals and achieves the desired results, you need to establish and then closely monitor a number of key metrics that you can use to guide your distribution strategy.
This approach allows you to correctly assess the effectiveness of distribution channels, identify potential problems and opportunities, and adjust the plan if necessary. Let's look at the main indicators of the distribution strategy:
Coverage
This refers to the number and percentage of potential buyers who access products through certain distribution channels. The goal is to maximize your coverage area to make the brand more recognizable and capture a larger market share.
Coverage
Source: shutterstock.com
Coverage metrics may include number of points of sale, geographic distribution, market penetration rate, and customer segments served.
Efficiency
In this case, the goal is to reduce distribution costs and maximize profits. Performance indicators may include distribution costs, inventory turnover, order processing speed, and return on investment.
Quality
It is about the reliability and consistency of the distribution service. The goal is to provide customers with products or services in the right volume, quality and on time. Quality can be measured by customer satisfaction, loyalty, retention and referral rates.
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Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you the 5 most valuable documents that we have developed for our clients.
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According to the length of the channels (that is, according to the number of intermediaries), the following are distinguished:
long distribution. This refers to the presence of a multi-level chain of intermediaries for the sale of goods. It is usually organized with the participation of several specialists. In this case, the delivery cycles of goods can be extended, for example, due to complex international logistics or the need to deliver to remote areas;
short distribution . It is carried out through indonesia email database one or two intermediaries. This type of distribution is much simpler than the previous option.
By the way of interaction with consumers . Small businesses do not have to pay for distribution services, while large companies have no choice. Thus, two main types can be distinguished:
direct - the manufacturer delivers the products independently;
indirect - intermediary enterprises appear between the seller and the buyer.
By degree of exclusivity. Depending on which distributor the manufacturer cooperates with, several types of distribution can be distinguished:
mass . This option is used for goods that can be distributed simultaneously through various retail outlets - from large shopping centers to small local stores;
selective . Applicable to products that occupy a specific market niche (for example, automobiles);
exclusive . This is the distribution of goods that can only be presented on the market by one official distributor or retailer.
Depending on geography, there are three varieties:
regional - distribution of goods in the region where they are produced;
national - sales of products in different regions of one country;
international - goods are delivered outside the country of manufacture.
Types of distribution
Source: shutterstock.com
Depending on the distribution goals, the following can be distinguished:
quantitative , where the main objective is to reach as wide an audience as possible in order to sell a larger number of products;
qualitative , which focuses on a deeper understanding of distribution channels and specific target audience segments;
point (drip) , in which the main attention is paid to the development of supplies to certain retail outlets.
In addition, digital distribution (content distribution) can be distinguished. This approach is relevant for the distribution of video games, computer and mobile software, films, music, video clips and e-books.
Read also!
"How to get contacts from a client: the most effective methods"
Read more
Distribution Strategy Indicators
To ensure that your distribution strategy is aligned with your business goals and achieves the desired results, you need to establish and then closely monitor a number of key metrics that you can use to guide your distribution strategy.
This approach allows you to correctly assess the effectiveness of distribution channels, identify potential problems and opportunities, and adjust the plan if necessary. Let's look at the main indicators of the distribution strategy:
Coverage
This refers to the number and percentage of potential buyers who access products through certain distribution channels. The goal is to maximize your coverage area to make the brand more recognizable and capture a larger market share.
Coverage
Source: shutterstock.com
Coverage metrics may include number of points of sale, geographic distribution, market penetration rate, and customer segments served.
Efficiency
In this case, the goal is to reduce distribution costs and maximize profits. Performance indicators may include distribution costs, inventory turnover, order processing speed, and return on investment.
Quality
It is about the reliability and consistency of the distribution service. The goal is to provide customers with products or services in the right volume, quality and on time. Quality can be measured by customer satisfaction, loyalty, retention and referral rates.
Increase Profits by 200%: Download 5 Powerful Tools for Free
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you the 5 most valuable documents that we have developed for our clients.
Download for free and implem