What Are Different Types Of Distribution Strategies?

by | Last updated on January 24, 2024

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  • Direct Distribution. Direct distribution is a strategy where manufacturers directly sell and send products to consumers. ...
  • Indirect Distribution. ...
  • Intensive Distribution. ...
  • Exclusive Distribution. ...
  • Selective Distribution. ...
  • Wholesaler. ...
  • Retailer. ...
  • Franchisor.

What are the three types of distribution strategies?

  • Intensive Distribution: As many outlets as possible. The goal of intensive distribution is to penetrate as much of the market as possible.
  • Selective Distribution: Select outlets in specific locations. ...
  • Exclusive Distribution: Limited outlets.

What are the 4 types of distribution?

There are four types of distribution channels that exist: direct selling, selling through intermediaries, dual distribution, and reverse logistics channels .

What is distribution strategy?

Distribution Strategy is a strategy or a plan to make a product or a service available to the target customers through its supply chain . ... A company can decide whether it wants to serve the product and service through their own channels or partner with other companies to use their distribution channels to do the same.

What are the types of distribution strategies?

  • Intensive Distribution. Intensive distribution, also known as mass distribution is intended for mass-marketing products. ...
  • Extensive Distribution. ...
  • Selective Distribution. ...
  • Exclusive Distribution. ...
  • Inclusive Distribution.

What are the 4 steps in the distribution process?

  1. Direct selling;
  2. Selling through intermediaries;
  3. Dual distribution; and.
  4. Reverse channels.

What are the 5 channels of distribution?

  • Retailers. Retailers are intermediaries used frequently by companies. ...
  • Wholesalers. Wholesalers are intermediaries that buy and resell products to retailers. ...
  • Distributors. ...
  • Agents. ...
  • Brokers. ...
  • The Internet. ...
  • Sales Teams. ...
  • Resellers.

How do you create a distribution strategy?

  1. Step 1: Evaluate the end-user. ...
  2. Step 2: Identify potential marketing intermediaries. ...
  3. Step 3: Research potential marketing intermediares. ...
  4. Step 4: Narrow in on the profitable distribution channels. ...
  5. Step 5: Manage your channels of distribution.

What are some examples of distribution?

Distribution is defined as the process of getting goods to consumers. An example of distribution is rice being shipped from Asia to the United States .

What are the 5 promotional strategies?

Promotion is one of the marketing mix elements among a system of five in a promotional plan (often known as the five Ps). These elements are personal selling, advertising, sales promotion, direct marketing, and publicity .

What are the elements of distribution?

  • Wholesaler. Goods are distributed from manufacturers to wholesalers in this channel. ...
  • Retailer. Goods are distributed from manufacturer or wholesaler to retailers. ...
  • Distributor. This channel moves goods from the source or manufacturer to an authorized distributor. ...
  • Ecommerce.

How many types of distribution do we have?

Types of Distribution Channels – 3 Main Types : Direct, Indirect and Hybrid Channels. Channels can be long or short, single or multiple (hybrid), and can achieve intensive, selective or exclusive distribution. The length of channel could have any number of intermediaries or be direct to customers.

What is the best distribution channel for a new product?

Certain products are best served by a direct distribution channel such as meat or produce, while others may benefit from an indirect channel. If a company chooses multiple distribution channels, such as selling products online and through a retailer, the channels should not conflict with one another.

What is distribution strategy example?

Distribution strategy is the method used to bring products, goods and services to customers or end-users. ... For example, a product might sell better online to one demographic and via a mail-to-order catalog to another target audience group .

What is Starbucks distribution strategy?

Starbucks uses multiple channels (hybrid) of distribution for its products . This means the company utilizes more than one distribution design. Firstly Starbucks sells its products through a direct retail system in company-owned stores.

What is direct distribution strategy?

A direct channel of distribution is the means by which a company gets its product straight to the consumer without using any intermediaries . ... However, a company that is responsible for the sale, transportation and delivery of its products directly to the customer is using a direct channel of distribution.

Emily Lee
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Emily Lee
Emily Lee is a freelance writer and artist based in New York City. She’s an accomplished writer with a deep passion for the arts, and brings a unique perspective to the world of entertainment. Emily has written about art, entertainment, and pop culture.