let’s explore the finer points of crafting a distribution channel strategy, the benefits of various channels and what you can do to fine-tune your approach. before designing a channel distribution strategy, ask yourself the following questions to understand your needs, capacity, limitations and goals. identifying your main channels is a bit like looking at the channels with your highest level of brand awareness, and then fitting your strategy to maximize performance in those channels. long channels mean higher costs and more cooks in the kitchen; a direct channel can lead to a better customer experience or brand impression.
you can essentially outsource those functions to a network of dealers, brokers and agents who do the selling for you. for instance, without the cost of a long channel, you may be able to offer special discounts or promotions on sales that can be traced from a facebook or twitter link. wholesalers will purchase and resell your goods in bulk, fulfilling orders to retailers — distributors do all that and more as an effective sales agent of the company. when sitting down to hammer out a distribution strategy, always be open to the different combinations that can be made with direct and indirect channels. but always be aware that unique factors like the industry in which you operate will be influential to your decision-making.
distribution channels in marketing are one of the classic “4 ps” (product, promotion, price, placement a.k.a. they’re a key element in your entire marketing strategy — they help you expand your reach and grow revenue. your dealers are essentially your customers, and you have a strong program to train and support them with marketing campaigns and materials. a var may work with an end-user to determine the right products and configurations, and then implement a system that includes your product. if you sell through these groups instead of (or in addition to) selling direct, treat the entire channel as a group of customers – and they are, since they’re buying your product and reselling it. if you reach your end-user through wholesalers, vars or other channel partners, you’ve created many successful marketing programs to drive revenue through your channel and you’re committed to their success. with your current system, you may not be effectively reaching your end-users; your prospects probably aren’t getting the information and service they need to buy your product.
you can evaluate a new distribution channel or improve your channel marketing / management at any time. your distribution strategy should deliver the information and service your prospects need. for each customer segment, consider: if you want to grow beyond the direct model, look for companies that have relationships with your end-users. if you use multiple channels, carefully map out the price for each step in your channel and include a fair profit for each type of partner. service your channel partners as you’d service your best customers and work with them to drive revenue. for example, provide them with marketing funds or materials to promote your products; run campaigns to generate leads and forward them to your partners. when your channel is up and running, you can start launching marketing campaigns to channel partners and end-users.
distribution channel strategy vs. channel distribution is solely about getting your product to the before you begin evaluate how your end-users need to buy match end-user needs to a distribution strategy know your product distribution channels. a distribution channel refers to the flow of business that occurs between, distribution channel strategy pdf, distribution channel strategy pdf, distribution channel strategy ppt, key elements of a distribution channel strategy, types of distribution strategy. your distribution channel strategy includes selecting the type of channel, determining the intensity of distribution, and designing the channel configuration, and managing the channel. you might think about why you need a channel strategy for access to markets, marketing, and sales support, or other sales support.
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