Developing and executing distribution channel strategies

Depending on the type and nature of an organisation, distribution channel marketing can be a critical of the overall top level marketing strategy of the company in question. If we were to make a summary definition of this topic we could say that it involves creating and operating through a network of intermediaries, such as dealers, value added resellers, wholesalers or retailers, who all work to assist in the movement of products from the manufacturer through to  the end user consumer.

Taking the time to flesh out a comprehensive successful distribution channel strategy up front which will lead on to a smooth [or smoother] execution phase can mean the difference between the organisation achieving stated and targeted sales goals or them falling short.

It is for the stated reason that we will look to explore how to develop an effective distribution channel  plan that will function for your business that is, due to products, goods and services being delivered into the hands of the customers in a timely fashion, with the maintainence of product quality.

The Importance of Developing a Successful Distribution Channel Strategy:

Developing a successful distribution channel strategy is essential because it assists organisations in gaining a competitive advantage and to be able to reach more customers in increasing and more diverse markets that they otherwise would not have had access to. By using multiple channels, companies are able to increase their chances of reaching potentialbuyers where they are most active. In addition to the above, having a strong distribution channel strategy will serve to improve customer satisfaction by ensuring that products are available when and where they are most needed.

Types of Distribution Channels in Marketing:

There are several types of distribution channels in marketing, some of these include

  • direct selling
  • indirect selling
  • and online selling

Direct selling means exactly what it says and it involves selling directly to consumers through methods such as door-to-door sales or avenues such as home parties. Indirect selling involves working with middlemen, such as value added resellers, wholesalers or distributors that function to get products into stores. Online selling includes e-commerce websites, social media platforms and other digital channels.

Tips and Tricks for Creating an Effective Distribution Channel Marketing Plan :-

In order to create an effective distribution channel plan a tried and tested starting point is to commence by identifying the outbound marketing company’s target audience and go on to determine which channels that aree being used most frequently. Then, focus on building relationships with key partners in the identified and chosen channels. This could be carried out and implemented in many forms including working closely with major retailers, partnering with influencers, or investing in search engine optimization or marketing (SEO / SEM) in order to improve the visibility of the company online.

Stephen C Campbell

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