Sales strategy
Distribution channel strategies
Distribution channel strategies for a service or product define how the good or experience will reach the hands of the final consumer. Choosing them correctly is essential to save costs, increase customer satisfaction and increase the chances of long-term success .
Summary
A distribution channel is the means through which products or services reach customers, ensuring their efficient movement from origin to destination.
The types of distribution channels are direct (without intermediaries) and indirect (with short or long intermediaries).
The choice of a distribution strategy depends on factors such as consumer habits, product characteristics, market organization and business structure.
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Market penetration: 5 successful mexico phone number lookup business strategiesThe concept of distribution channel refers to the means by which a product or service reaches the customer. Its objective is to ensure the efficient movement of goods from their point of origin to their destination, whether to intermediaries, customers or storage centers.
What are the distribution channels of a company?
1. Direct Channel
In this channel, the producing company is the main and only party responsible for ensuring that the product reaches its final consumer. Therefore, there are no intermediaries in this process.
Retailers selling via catalogue, for example, often adopt direct distribution channels. And, although it limits the size of the customer base , it enables the company to lower prices, since it does not need to pay intermediaries.
Need ideas to boost your profits? Read: Sales: 4 strategies to succeed in 2023 .
2. Indirect Channel
In the indirect channel, intermediaries deliver the product. In this case, although the manufacturer does not have a great deal of control over distribution, it is possible to reach a larger number of customers. This channel can be divided into two: