Without an elaborate marketing and distribution strategy, a business may not be successful. Good analysis of the market and planning business thoroughly can mean much more than simply rolling out a quality product/service.
This process can be defined as an organized network of institutions and companies that perform the activities necessary to connect manufacturers with consumers. All of this is done in order to achieve certain marketing goals and objectives.
The negotiating tools that lead the way for products and services from the producer to the end consumer include the following:
transfer of ownership of the goods
physical possession of the goods
Management of distribution can be defined as the process of planning, managing and controlling of all of activities in the distribution process. By using a good strategy, distribution can bring the company a big advantage over the competition.
Picking the best marketing and distribution strategies is far from being an easy job, because it has a lot to with the type of business. Because of that, a good research is crucial. Still, all distribution strategies can be separated in three categories, depending on the type of product they’re dealing with:
Intensive distribution (common for businesses dealing with basic supplies)
Selective distribution (manufacturer relies on several companies, which sell their product)
Exclusive distribution (typical business approach of luxury brands)
How to Choose a Distribution Channel?
The experience has shown that in many cases, the obvious choice is not the right one. Sometimes, it’s better to go with a new approach, because customers are always looking for a better way to get to the products they need. That is where marketing research services come to aid.
A marketing research agency needs to find out how big the market is – how many customers would want to pay their money for the product or service, where and under which conditions. The research should provide the management with answers regarding buying habits of potential
In order to pick the right marketing and distribution strategies, business owners need to have the information about what their customers like and what they don’t. It is also important to know where they are located.
Geographical location is the crucial factor when it comes to the reach of the product. Depending on the preferences, a business can sell their products locally, hiring a local distributor or a retailer. However, those with worldwide ambitions will have to use marketing and distribution strategies that involve multinational distribution networks.
Is it Worth Doing Market Research to come Up with Distribution Strategies?
The simple answer – yes, knowing the market and the buying habits of the customers is of crucial importance, not only for distribution, but for all areas of business.
Every marketing research company that wants to succeed on the market needs to offer their clients marketing research services, which include not only the suggested future marketing strategies, but also distribution plans.