Distribution Strategy

Posted in Marketing and Strategy Terms, Total Reads: 2950
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Definition: Distribution Strategy

Distribution strategy is the method one uses to get products and services on to different distribution channels and networks to reach the end customer or the purchaser; it is how and where the customer buys the product. It forms one of the 4 main parts of a marketing strategy and focuses on


  • Location of business
  • Location of target market
  • Reaching the target market
  • Warehousing
  • Transportation and logistics

In many situations one or more distribution channels can be used, for example (there are many more forms apart from these)

  1. Manufacturer -> end customer
  2. Manufacture -> agent -> end customer
  3. Manufacturer -> retailer -> end customer
  4. Manufacturer -> wholesaler -> retailer -> end customer
  5. Manufacturer -> reseller -> retailer -> end customer
  6. Manufacturer -> franchisor -> franchisee -> end customer

In deciding the most appropriate distribution strategy, primarily a manufacturer or a marketer should ask the following two questions:

  1. What is the most effective way to reach the end customer
  2. What are the benefits and costs of a particular method

 

Hence, this concludes the definition of Distribution Strategy along with its overview.

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