Activities related to the distribution of products and services are one of the cornerstones of doing business. The development of strategies and the selection of appropriate channels makes it possible to do business in different markets, even where customers speak different languages. In this article, you will learn what distribution is, what the marketing mix is, what intensive distribution is, and what a distribution network is and which channels you should use in your business.
Distribution - what is it?
Distribution is a series of processes that ultimately aim to make products reach from the production zone to the consumption zone (target customers) in the most cost-effective and direct way possible. When we talk about the distribution of services, we focus primarily on access to these services.
In answering the question of what is distribution, it is possible to recall a concept that recognises that, in practice, distribution management encompasses a diverse range of activities and disciplines. First of all, the concept distinguishes elements such as logistics, transport, warehousing, storage, inventory management and entire channels. It also refers to the selection of team members responsible for distribution channels.
In addition to functioning on its own, distribution is also referred to as one of the elements that make up the marketing mix. In this case, it is part of a process to make a product or service available to a business user or consumer. The condition for this to occur must be that the business party needs such goods.
Distribution decisions, as with other products or commodities, must be made in line with the company's overall strategic vision and mission. At the strategic level, there are three broad approaches to distribution, namely distribution:
- selective,
- mass,
- exclusive.
The number and type of intermediaries chosen depends largely on the strategic approach. The overall distribution channel should add value for the consumer.
What are the distribution strategies?
A distribution strategy is a method used to deliver products, goods and services to customers, or more broadly to end-users. An easy, as well as effective, way to deliver goods to buyers can ensure an influx of repeat customers.
Comparing different types of distribution strategies in terms of their cost-effectiveness and profitability is one of the most important tasks a company or business has to perform when wanting to match the type of sales channels to the expectations that the consumer has. 
Multichannel distribution, for example, is popular, in which different strategies intersect and overlap in order to sell the company's product or services to, ultimately, meet the company's objectives.
A good example of such distribution is online sales. Unfortunately, but nowadays this is a rather broad concept: a select group of customers may prefer to buy goods directly via a website, while another will use, for example, a mail-order catalogue if the company has one.
The item itself is often the key to determining the right distribution strategy, type and channel. For example, if your product is a high-end designer furniture line, buying directly from the manufacturer can be a great option for the customer.
If, on the other hand, your product is a routine, everyday item, such as a bottle of water, it will be much better to base your sales system on nearby shops. When planning your distribution strategy, there are several factors to consider, including:
- Product type,
- customer base,
- procurement and transport logistics.
Depending on the type of product or service you offer, your distribution strategy may differ. For example, the distribution strategy of a luxury car brand may differ from that of a paper towel manufacturer.
Consumers, by the type of product they buy, fall into three groups:
- routine,
- limited,
- extensive.
The first group are buyers whose routine purchase is usually an inexpensive product or service that the customer chooses quickly, such as bread, fizzy drinks and paper products.
A group of limited consumers chooses to purchase a moderately priced item, which the customer spends more time selecting than a routine purchase. One can point to electronics, furniture or white goods.
The consumer division closes with the extensive group, which includes large-scale purchases, often of expensive items that the customer thinks about intensively before buying. An excellent example of such a good would be, for example, a car or a motorbike.
Another factor to consider when characterising distribution elements is the user or customer base. Depending on where your customers usually shop, you need to arrange the entire distribution network quite differently.
For example, if your target customer base for a paper towel product is a middle-aged woman shopping in a grocery shop, you may choose to distribute to various stationary outlets such as grocery chains and warehouse companies.
If the ideal customer base for your personalised furniture is an affluent tech-savvy customer, distributing directly from the production warehouse via online sales may work much better. The types of purchasing methods preferred by consumers may include:
- witryny e-commerce,
- direct mail orders,
- shop fronts,
- door-to-door sales.
The capacity and costs associated with running a warehouse and delivery logistics is another factor to consider when building a strategy. Having a warehouse to store goods, a fleet of transport vehicles such as trucks and vans and staff to operate the warehouse is a large financial investment.
Depending on the storage and delivery needs of the product or service, choosing an alternative distribution strategy can lead to reduced costs and increased revenues. 
Types of distribution channels
There are primarily two types of distribution strategies, known as direct and indirect, which offer the company different benefits and savings depending on the product or service.
Direct distribution is when producers sell and ship their products directly to consumers without the use of other parties or entities. This often requires a warehouse to store the products and a delivery process to get them to customers.
In the case of indirect distribution, the strategy is for manufacturers to use intermediary companies and entities so that the delivery of products to customers is as logistically solved as possible. This is useful for high volumes of routine products and can result in tangible savings for the company.
Within these two main types of distribution strategy are more specific options, including:
- Exclusive distribution: occurs when a manufacturer chooses a few outlets to create a certain level of exclusivity for an item or brand, such as luxury goods. It is also sometimes referred to as exclusive distribution.
- Intensive distribution - what is it? This is the scheme that occurs when a manufacturer wants to enter a market by selling its goods to as many outlets as possible to reach customers, usually for affordable routine items such as candy bars, household goods and drinks.
- Selective distribution is a combination of exclusive and intensive distribution. Such a strategy involves a supplier committing to supplying products to selected partners. For example, a high-end carpet manufacturer selecting a particular department store to reach more customers.
- Dual distribution: combines direct and selective distribution strategies to increase market impact and also maintain direct sales with customers.
- Reverse distribution: is often less common, as the item flows from the customer back to the company, usually for recycling or refurbishment of goods such as used computers or other electronics.
The above sub-types can also include restricted distribution: what does this mean? It is the denial of the free movement of products and services due to legislation. The reason could be, for example, an imposed trade embargo.
What are the characteristics of a distribution network?
One of its most important elements is the distribution agreement. It is a kind of set of commitments that both parties involved in the transaction have made under the contract.
The distribution network can be both domestic and international. A good example of the latter could be cars that are sold in Poland by representatives of a foreign manufacturer.
The transfer of goods by a large number of trading partners online, due to the lengthening of the supply chain, also makes the time to reach the customer longer.
The distribution network models available and presented to management must be in line with the company's objectives, and the choice of the optimal network is one of the strategic logistics problems that can have a significant impact on the final price of goods.
Distribution in marketing - what is worth knowing?
The distribution marketing mix, sometimes referred to as the marketing mix, is the interconnected elements (methods, activities or processes) used by sellers that influence the company's market environment - consumers and competitors.
The network marketing mix consists of:
- product,
- dinner,
- promotion,
- distribution.
Product distribution involves the delivery of goods to end consumers. According to the four components of the marketing composition, the logistics of the distribution marketing mix includes information about the production of the product, offering the service to buyers, establishing a relationship with the customer, collecting information about the market and, at the very end, getting the product or service to the consumer.
Between the delivery of goods and their manufacture, the distribution strategy must be effectively managed at every step. Its effective maintenance depends on elements such as:
- differences between customers' needs and expectations (learning about and bridging these aspects),
- continuous assistance to the purchaser so that he or she can make a purchasing decision quickly,
- striving to achieve the shortest possible time between the introduction of products or services into the market and the moment when the company sells the goods and they reach the customer, and performing the contract and transactions on the basis of the terms and conditions that have been agreed therein.
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