What are the three types of distribution strategies?
At the strategic level, there are three broad approaches to distribution, namely mass, selective and exclusive distribution. The number and type of intermediaries selected largely depends on the strategic approach. The overall distribution channel should add value to the consumer.
What does distribution strategy mean?
A distribution strategy is a method of disseminating goods or services to end-users. Implementing the most efficient distribution method for your business is key to obtaining revenue and retaining customer loyalty. Some companies opt to use multiple distribution methods to adhere to different consumer bases.
What are the 4 types of distribution?
Types of Distribution Channels – 4 Important Types: Direct Sale, Sale through Retailer, Wholesaler, Agent
- Direct Sale: This is the simplest form of distribution channel which involves the manufacturer and the consumers. …
- Sale through Retailer: …
- Sale through Wholesaler: …
- Sale through Agent:
What is a distribution channel in marketing?
A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer. Distribution channels can include wholesalers, retailers, distributors, and even the Internet.
How do you create a distribution strategy?
- Evaluate If You Should Pursue Adding a New Distribution Channel. Distribution is a key element of your marketing strategy – it’s how you access your market. …
- Define What Your Channel Will Look Like. …
- Find Channel Partners and Create Your Channel Plan. …
- Create Your Channel Pricing Strategy.
What are the 3 levels of distribution?
Types of Distribution: Intensive, Selective and Exclusive…
- Intensive Distribution: Intensive distribution aims to provide saturation coverage of the market by using all available outlets. …
- Selective Distribution: Selective distribution involves a producer using a limited number of outlets in a geographical area to sell products. …
- Exclusive Distribution:
What is direct distribution strategy?
Direct distribution is a direct-to-consumer approach, where the manufacturer controls all aspects of distribution. Indirect distribution involves third parties, like warehouses, wholesalers, and retailers. Direct distribution gives companies more control over the whole process.
What factors influence how you distribute a product?
We have to consider the following factors for the selection of channel of distribution:
- (i) Product:
- (ii) Market:
- (iii) Middlemen:
- (iv) Company:
- (v) Marketing Environment:
- (vi) Competitors:
- (vii) Customer Characteristics:
- (viii) Channel Compensation:
What distribution strategy does Apple use?
M,2012). Apple’s marketing mix exactly did the same & thus taking the advantage of its various distribution channels. Apple has adopted the selective distribution strategy with exclusiveness,In this push strategy is used (Wilkinson 2013). Its main market is United States with 50% share followed by Europe & Asia..
What is the 4 C’s in marketing?
Let’s clarify the two models: The 4Cs to replace the 4Ps of the marketing mix: Consumer wants and needs; Cost to satisfy; Convenience to buy and Communication (Lauterborn, 1990). The 4Cs for marketing communications: Clarity; Credibility; Consistency and Competitiveness (Jobber and Fahy, 2009).
What is process of distribution?
The process of distribution refers to a series of activties which takes place between the time of the production of goods and the time they reach the final consumers or put it another way, the time taken up by the production unit of such activities are part of a continuing process of productions.
What are examples of distribution?
The following are examples of distribution.
- Retail. An organic food brand opens its own chain of retail shops.
- Retail Partners. A toy manufacturers sells through a network of retail partners.
- International Retail Partners. …
- Wholesale. …
- Personal Selling. …
- Direct Marketing. …
- Ecommerce. …
- Direct Mail.
Why is distribution important in marketing?
Channels of distribution for a product the route taken by the title to goods they are from the producers to the ultimate consumers. It is very important because product in one place while the consumption scattered in many place.