think of a distribution channel as one slice of the overall marketing pie. a channel acts as an important part of your small business’s overall marketing strategy and is one of the “four ps” of marketing – product, promotion, price and placement, or distribution. the distribution channel or channels selected can dictate what the rest of the marketing strategy would be, as they influence the buyer directly. advertising and other marketing methods would then appeal to the buyer’s demographic. analyzing the market will also help determine competitive pricing for the product and the best distribution channel or channels. this includes whether to advertise in traditional media, online or both; conduct promotions or giveaways; try guerrilla marketing tactics and other ways to reach the target buyers.
thereafter, conducting regular marketing analysis, reviews of how effective the marketing strategy is based on sales and interest in the product, will help companies figure out whether their marketing strategies are working or whether they need to reconsider how they are promoting the product. the distribution channel should be matched against its buyers. so a small company selling skis might open a retail shop near ski resorts as opposed to the middle of a city, far from resorts. small companies will need to select the best distribution channels they can afford to keep open. do they want to buy online, talk to direct sales reps or browse in a store? once that’s determined, the company should figure out whether to sell directly or through a marketing intermediary such as retailers or wholesalers by estimating which one would bring in the most profit. jorina fontelera has been writing about business since 2003, covering the printing and manufacturing sectors, as well as the global accounting and financial industries.
when creating a marketing strategy, your distribution channels should be one of your four core subjects of discussion along with product, price and promotion. some marketers differentiate between how you sell and where you sell, classifying distribution channels as the macro selection of sellers, with distribution methods the micro selection of outlets. for example, distribution channels include direct sales, wholesalers, retailers, resellers and sales representatives. some organizations reverse the use of these two words, with “methods” referring to how you sell and “channels” referring to where. when evaluating distribution channels, a key concern is the effect each channel has on your sales volumes. a wholesaler, independent sales rep, sales rep company or retail channel can help you project your sales volumes based on their history with similar products.
if you plan on selling online, you might have no way to project sales volumes. different distribution channels also require different levels of marketing support, with direct sales requiring more spending out of your budget than the use or a retail chain, which brings in customers with its own marketing. if you sell a high-end product through a discount retailer, such as a national big box, you not only associate yourself with that discounter’s brand but with the products on the shelf next to you. selling in fewer high-end outlets might reduce your sales volumes but can maintain or enhance your brand, letting you increase your price and increase your margins. he has worked in the corporate and nonprofit arenas as a c-suite executive, serving on several nonprofit boards. he has been published in print publications such as entrepreneur, tennis, si for kids, chicago tribune, sacramento bee, and on websites such smart-healthy-living.net, smartycents and youthletic.
conducting an overall market analysis helps determine the target demographic and demand for your products, as well as your competitors and their distribution summarize your options by evaluating each potential distribution channel using the following factors: distribution costs, promotion costs, customer preference, a distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer., distribution channel analysis example, distribution channel analysis example, 4 types of distribution channels, distribution channels, channels of distribution (macro analysis).
marketing analysis begins with an analysis of company’s distribution channels and a comprehensive analysis of the entire market distribution system. the final analyze intermediaries’ market participation, reputation, and performance to only then try to select the most appropriate option. 6. logistics. consider analysis of. distribution. channels. a.e. bellhouse and g.m. hutchison a distribution channel model for a “high technology” business., marketing channel analysis, channel of distribution in marketing. what is distribution channel analysis? what are the 4 channels of distribution? what is channel analysis? what are the 6 channels of distribution?
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