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
Sales Jonathan Poland

Sales

Sales is the process of establishing relationships with potential customers, discovering their needs and preferences, presenting solutions to their problems,…

Project Failure Jonathan Poland

Project Failure

A project is considered a failure when it does not meet the expectations of sponsors and other key stakeholders. This…

Research Design Jonathan Poland

Research Design

Research design is the overall plan or approach that a researcher follows in order to study a particular research question.…

Payback Theory Jonathan Poland

Payback Theory

Let’s say you live in a town with two bakeries for sale at $1 million each. Both offer similar products…

Companies Likely to Aquire Federal Funding 150 150 Jonathan Poland

Companies Likely to Aquire Federal Funding

While the specific industries receiving federal funding can vary depending on the country and its government priorities, there are several…

Request for Proposal Jonathan Poland

Request for Proposal

An RFP (request for proposal) is a document that asks suppliers to provide a detailed proposal for a supply contract.…

Storytelling Jonathan Poland

Storytelling

Storytelling is the act of using narrative to communicate information in an engaging and memorable way. Businesses can use storytelling…

Alliance Marketing Jonathan Poland

Alliance Marketing

Alliance marketing refers to a strategic partnership between two or more organizations in which they agree to collaborate on marketing…

Strategic Partnership Jonathan Poland

Strategic Partnership

A strategic partnership is a relationship between two or more organizations that is characterized by mutual cooperation and the sharing…

Content Database

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

Qualitative Data Jonathan Poland

Qualitative Data

Qualitative data refers to information that is expressed in a language such as English and cannot be easily quantified or…

Economic Relations Jonathan Poland

Economic Relations

Economic relations between nations refer to the economic interactions that occur between them. These interactions can include the exchange of…

Liquidity Risk Jonathan Poland

Liquidity Risk

Liquidity risk is the risk that a financial institution or company will not be able to meet its financial obligations…

Customer Service Jonathan Poland

Customer Service

Customer service is the practice of providing support, assistance, and guidance to customers before, during, and after a purchase. This…

Supplier Risk Jonathan Poland

Supplier Risk

Supplier risk refers to the risk that a supplier will not fulfill their commitments to an organization, which could result…

Switching Barriers Jonathan Poland

Switching Barriers

Switching barriers are factors that make it difficult or inconvenient for customers to switch from one product or service to…

Process Risk Jonathan Poland

Process Risk

Process risk is the risk of financial loss or other negative consequences that may arise from the operation of a…

Payback Period Jonathan Poland

Payback Period

The payback period is the length of time it takes for an investment to recoup its initial cost and start…

Durable Competitive Advantage Jonathan Poland

Durable Competitive Advantage

The most important aspect of durability is market fit. Unique super simple products or services that does change much if…