How to choose the right distribution channel
Posted: Mon Dec 09, 2024 8:56 am
With the establishment of e-commerce, the means that companies use to deliver their products to the end customer have undergone changes. Although traditional channels continue to exist, the Internet has brought manufacturers and consumers closer together, blurring the role of the different distribution agents.
Criteria for selecting the distribution channel
Therefore, when choosing the distribution channel, the company's objectives and strategies must be taken into account. Producers pay particular attention to:
Control. Once the product leaves the producer's hands, it gambling data china becomes the property of the buyer. Therefore, it is advisable to use a short distribution channel that provides greater control.
Market coverage. It is important to consider the size and value of the potential market you wish to supply. For example, intermediaries reduce the number of transactions that need to be made to reach a market of a given size.
Costs. Intermediaries perform distribution more efficiently than a producer. Therefore, distribution costs are generally lower when intermediaries are used in the distribution channel. When evaluating the alternatives, we find the sales force of the company and the sales agency of the producer.
Distribution strategies. Depending on the number of stores in which you want to sell your product, there are: exclusive strategies, with a single intermediary; selective strategies, with a limited number of intermediaries; and intensive strategies, where the sale is made through multiple agents with the aim of placing the product in as many stores as possible.
Therefore, each business must study which distribution channel is best for it, taking into account its distribution capacity and its business strategy, without forgetting the strategy that generates the highest sales at the lowest cost.
All those professionals who wish to expand their experience in business management techniques will be able to achieve their goal with the university programs sponsored by FUNIBER . One of the courses offered is the specialization in Strategic Management or the Master's Degree in Digital Marketing and Big Data focused on the digital environment.
Criteria for selecting the distribution channel
Therefore, when choosing the distribution channel, the company's objectives and strategies must be taken into account. Producers pay particular attention to:
Control. Once the product leaves the producer's hands, it gambling data china becomes the property of the buyer. Therefore, it is advisable to use a short distribution channel that provides greater control.
Market coverage. It is important to consider the size and value of the potential market you wish to supply. For example, intermediaries reduce the number of transactions that need to be made to reach a market of a given size.
Costs. Intermediaries perform distribution more efficiently than a producer. Therefore, distribution costs are generally lower when intermediaries are used in the distribution channel. When evaluating the alternatives, we find the sales force of the company and the sales agency of the producer.
Distribution strategies. Depending on the number of stores in which you want to sell your product, there are: exclusive strategies, with a single intermediary; selective strategies, with a limited number of intermediaries; and intensive strategies, where the sale is made through multiple agents with the aim of placing the product in as many stores as possible.
Therefore, each business must study which distribution channel is best for it, taking into account its distribution capacity and its business strategy, without forgetting the strategy that generates the highest sales at the lowest cost.
All those professionals who wish to expand their experience in business management techniques will be able to achieve their goal with the university programs sponsored by FUNIBER . One of the courses offered is the specialization in Strategic Management or the Master's Degree in Digital Marketing and Big Data focused on the digital environment.