Distribution

Distribution

Distribution Jonathan Poland

Distribution is the process of making a product or service available for use or consumption by consumers or businesses. It involves a range of activities, such as transportation, warehousing, and inventory management, that ensure that the product or service is available in the right quantity, at the right time, and in the right place. Distribution is an important part of the supply chain, as it connects the producers of goods and services with the consumers who need them. It can also play a role in pricing, as the cost of distribution is often included in the price of the product or service.

Products and services are distributed by channels such as direct selling, digital commerce, retail locations and partners. A distribution strategy may include several channels with a separate pricing strategy for each. It is also common for a distribution strategy to include methods of managing channel partners such as offering incentives to meet sales goals. Distribution typically has a geographical element and it’s common to use different channels from one region to the next. For example, partners may be used to access international markets. 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
A French furniture company operates its own retail locations in France and sells through retail partners in 18 other countries.

Wholesale
A sugar refiner sells to a sugar wholesaler.

Personal Selling
An information security consulting company sells its services directly to clients by networking at security and IT events.

Direct Marketing
An electronics company sells devices with television ads and a phone number.

Digital / Internet
A cloud services provider sells its services exclusively through its website using internet advertising.

Direct Mail
A fashion brand develops a list of customers and sends them a full product catalog each season that drives telephone, internet and retail purchases.

Dealer Network
A automotive company sells through a network of authorized independently owned dealerships.

Value Added Reseller
A solar panel manufacturer partners with construction companies who sell the panels as an option on new buildings.

Sales Agents
A property developer sells through partnerships with a variety of sales agents.

Learn More
Prospecting Jonathan Poland

Prospecting

Sales prospecting is the process of identifying and researching potential customers for a business’s products or services. This typically involves…

Process Automation Jonathan Poland

Process Automation

Introduction: Process automation refers to the use of information systems to automate business processes in order to improve efficiency and…

Modular Products Jonathan Poland

Modular Products

Modular products are products that are made up of standardized, interchangeable parts or modules that can be easily assembled and…

Substitution Pricing Jonathan Poland

Substitution Pricing

A substitution price is the price at which a customer will choose to switch to a different product or service…

Calculated Risk Jonathan Poland

Calculated Risk

Calculated risk is an essential concept in the field of risk management. It refers to the process of carefully assessing…

Sticky Prices Jonathan Poland

Sticky Prices

Sticky prices are a common phenomenon in many markets, and they can have a significant impact on the overall economy.…

Local Marketing Jonathan Poland

Local Marketing

Local marketing refers to any marketing strategy that targets customers in a specific, finely-grained location, such as a city or…

What is Dumping? Jonathan Poland

What is Dumping?

Dumping refers to the act of selling a product or service in a foreign market at a lower price than…

Fiduciary Duty Jonathan Poland

Fiduciary Duty

Fiduciary duty refers to the legal obligation of one party to act in the best interests of another party. This…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

Product Development Jonathan Poland

Product Development

Product development is the process of designing, creating, and launching new products. It typically involves a number of different steps,…

Program Efficiency Jonathan Poland

Program Efficiency

Program efficiency refers to the effectiveness with which a computer program uses resources such as time and memory. In general,…

Service Quality Jonathan Poland

Service Quality

Service Quality is determined by the value it holds for customers. This value can vary from person to person and…

Basis of Estimate Jonathan Poland

Basis of Estimate

A basis of estimate (BOE) is a document that outlines the methodology and assumptions used to create an estimate for…

Big Picture Thinking Jonathan Poland

Big Picture Thinking

“The big picture” refers to the broadest possible perspective that can be taken in a thought process. Big picture thinking…

What are Field Services? Jonathan Poland

What are Field Services?

Field service involves managing and deploying resources and assets at customer, public, and third-party locations, as well as providing services…

Communication Channels Jonathan Poland

Communication Channels

A communication channel refers to the various means of transmitting information and messages between individuals or organizations. There are many…

What is a Flagship? Jonathan Poland

What is a Flagship?

A flagship is a product or service that represents the best a company has to offer and is intended to…

Key Strengths Jonathan Poland

Key Strengths

Key strengths are talents, character traits, and knowledge that are particularly relevant to a given role. These are often listed…