What Are Different Types Of Distribution Strategies?

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 are the 3 levels of distribution?

There are three main levels of distribution coverage – mass coverage, selective and exclusive.

What is distribution channel strategy?

Distribution channels are the ways in which products travel from business to end customers. A typical flow of products for brick-and-mortar retail stores will begin with a manufacturer, move to the hands of distributors, then to retailers who market and sell the products and finally to the end customers.

What is exclusive distribution strategy?

Exclusive distribution is a distribution strategy whereby a producer sells its products or services in only one retail outlet in a specific geographical area.

What is intensive distribution strategy?

Definition: Intensive distribution is a form of marketing strategy under which a company tries to sell its product from a small vendor to a big store. Virtually, a customer will be able to find the product everywhere he goes.

What are the two types of distribution channels?

In marketing, goods can be distributed using two main types of channels: direct distribution channels and indirect distribution channels. A distribution system is said to be direct when the product or service leaves the producer and goes directly to the customer with no middlemen involved.

What are the processes 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 is the most effective marketing channel?

The 6 Marketing Channels You Should Prioritize in 2020Pay-Per-Click Marketing. As far as marketing channels go, pay-per-click (PPC) advertising is still an unbeatable juggernaut, especially with the diverse options now available to brands. … Social Media. … Email Marketing. … Your Website. … Content Marketing and SEO. … Word of Mouth Marketing.

How do you create a distribution channel?

The channel design decision can be broken down into six steps namely:Recognizing the need for channel design decision.Setting and coordinating distribution objectives.Specify the distribution tasks.Develop alternative channel structures.Evaluate relevant variables.Choose the best channel structure.

What are the elements of distribution management?

The basic elements of specific functions that make up physical distribution include (i) Materials handling; (ii) inventory planning and control ; (iii) order processing ; (iv) transportation ; and (v) a communication system to integrate the physical distribution process.

What is the chain of distribution?

The chain of distribution is the series of companies or businesses that are involved in transporting, storing and providing goods and services to customers.

What are the 4 types of distribution?

Types of Distribution Channels – 4 Important Types: Direct Sale, Sale through Retailer, Wholesaler, AgentDirect 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 another name for distribution?

Some common synonyms of distribute are deal, dispense, divide, and dole out.

What is distribution level?

Channels of distribution can be divided into the direct channel and the indirect channels. Indirect channels can further be divided into one-level, two-level, and three-level channels based on the number of intermediaries between manufacturers and customers.

How do you distribute a product?

Possible distribution channels are selling:directly to consumers;to retailers;to supermarkets;to wholesalers;to institutions and the catering trade.

What are examples of distribution?

Distribution is defined as the process of getting goods to consumers. An example of distribution is rice being shipped from Asia to the United States. The process of distributing or the condition of being distributed, especially: The process of marketing and supplying goods, especially to retailers.

How do you create a distribution strategy?

How to Create a Distribution Strategy That Actually Makes MoneyStep 1: Evaluate the end-user. … Step 2: Identify potential marketing intermediaries. … Step 3: Research potential marketing intermediares. … Step 4: Narrow in on the profitable distribution channels. … Step 5: Manage your channels of distribution.

What are distribution activities?

What Is Distribution Management? Distribution management refers to the process of overseeing the movement of goods from supplier or manufacturer to point of sale. It is an overarching term that refers to numerous activities and processes such as packaging, inventory, warehousing, supply chain, and logistics.

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 is distribution strategy example?

Direct distribution is a strategy where manufacturers directly sell and send products to consumers. … For example, manufacturers will need to add warehouses, vehicles and delivery staff to their portfolio to effectively distribute goods on their own.

How can you make a distribution channel effective?

There are three high-level ways to increase channel efficiency:Increasing or carefully picking the channel intermediaries.Increasing the focus on supply chain management.Consolidating all channels into a single, strong channel.