An Ultimate Guide To Distribution Strategy In Marketing Plan

Distribution strategy in marketing plan works as the required channel to deliver the products to the customers. There are various aspects of a distribution strategy. You have to choose a strategy based on your business needs and requirements. This article has mentioned all the factors to help you decide the right distribution strategy marketing for your business. You will also find certain ways to make your distribution easy and familiar for the customers. Let’s begin with the guide and find the best possible distribution strategy for your brand.

What are the 5 P Strategies in Marketing?

The 5Ps of marketing stands for product, place, promotion, and price. They are also known as marketing mixes. The 4 P strategies in marketing is typically used to market a product or service. Simply, this strategy helps in marketing, promoting, advertising, and positioning your product in the market. All the 4P allow you to look at your marketing decisions holistically. It helps you decide on a marketing framework, considering your competitors and customers. Let’s have a look at all the four Ps separately.

5P's of Marketing
5P’s of Marketing
  1. Product: It refers to deciding the design, features, quality, branding, packaging, and other such factors of your product. Simply put, this P increases the quality of your product or services for your customers.
  2. Place: It refers to selecting the right strategies and distribution channels. It help you to avail your products or service to your customers easily. Simply put, you need to select the right sales channel, location of retail outlets or distribution center, and inventory management technique. Therefore, this strategy allows you to choose an easy, convenient, accessible, and distribution network.
  3. Price: It refers to deciding the right pricing for your product based on all the market factors. It includes the customer purchase power, product value, positioning, production cost, and competition. There are various pricing methods that you can choose based on your business needs and requirements. It includes penetration pricing, skimming pricing, value-based pricing, and a lot more.
  4. Promotion: It consists of various promotional methods. It helps you to promote your company’s product or services to the target market. It includes direct marketing, personal selling, ads, public relations. The main motive of the promotion is to build awareness, interest and convert the customers.
  5. People: People mean the working staff, salesperson, customer support and all the company employees. They can treat the customers well, help them make purchases, and resolve all the issues even after the purchase.  

What is a Distribution Strategy in Marketing Plan?

Distribution strategy in marketing plan refers to implementing methods. It helps you to make your product/service available to your customers. Selecting an easy distribution channel is an essential component of attracting and retaining customers. There are several distribution strategies in the market. But you have to choose the one that is cost-effective and maintains your profitability. To select the right distribution strategy, you must first thoroughly understand your target market.

Analyze how your target customers buy your products, for instance, online or offline. Then, it would help if you researched multiple strategies to make their buying process easier. For example, if you’re selling high-quality furniture, customers would love to buy directly from the manufacturers. It will be worth their time and energy. However, the routine products will be better sold at their nearby local stores.

Why are Distribution Strategies Important?

Every business is aimed to sell the product or services to the customers. And distribution strategy in marketing plan refers to the way through which your customers are going to get your product. Thus, its importance doesn’t need to be defined. Yet, we have mentioned certain practical reasons why distribution strategies are important.

Importance Of Distribution Strategies
Importance Of Distribution Strategies

Covers Larger Market Base

Distribution strategies make your product or services easily reach customers. Thus, many of the new customers also attract your brand. It helps you reach a wider customer base and cover a larger market.

Customer Convenience

Distribution strategy in marketing plan generally refers to methods that make your product readily available to customers. It also helps the customers to get the product through their preferred channel and at their preferred location. Thus, this simple process attracts and converts more customers than usual.

Undue Competitive Edge

Companies with a defined distribution strategy marketing sell products more effectively. Thus, it will give you various competitive edges to put a stand in the market. For instance, you will have faster delivery options, better product availability, top-notch customer service, and much more. These additional features differentiate your brand from the rest of the market.

Cost Efficient

Distribution is not only about choosing the easiest way to deliver the product or service to the company. You also have to ensure the supply chain’s cost efficiency. Plus, you also have to minimize the cost of warehousing, inventory management, and transportation. It helps the companies to increase their overall profitability.

Brand Visibility

Here, you ensure that your products are readily available at retail stores, online channels, or anywhere based on customer preference. It increases your brand visibility and presents your brand to the target customers. Thus, it shapes the overall image of your brand.

Types of Marketing Distribution Strategy

Types of Distribution Strategy in Marketing
Types of Distribution Strategy in Marketing

1. Direct Distribution

As the name sounds, Direct Distribution refers to the B2C channel, where the brands directly sell to the consumers. They may sell their product or service through their ecommerce website. For example, various clothing brands sell their clothes to customers from their ecommerce websites.

2. Indirect Distribution

Indirect marketing distribution strategy in marketing plan consists of various stages and typically has a long supply chain. Here, the brand sends its products to carry & forward specialists. Then, the product proceeded to the distributor and then the retailer. This long supply chain eventually makes the product available for the customers and is known as Indirect Distribution. For example, brands like Coca-cola work upon an Indirect Distribution strategy. Big brands require multiple distributors and retailers to avail the products globally.

3. Intensive Distribution

Intensive distribution is one of the versatile types of distribution strategy. This distribution strategy aims to make the products reach the maximum marketplace. In simple terms, this strategy makes you sell and deliver your products to the maximum possible customers. Thus, it allows you to use any short or long-distribution strategies depending on the needs and requirements. You have to make sure to reach the maximum customer possible.

4. Exclusive Distribution

Exclusive distribution refers to having only selected stores purchase your product. Brands that generally have a premium positioning in the market utilize exclusive distribution. For instance, a premium brand like Apple only has its stores in some possible cities. Instead, they have a very limited number of stores but still need to generate excellent revenue and profit. Thus, this strategy is befitting for the premium segment brands.

5. Selective Distribution

Likewise the exclusive distribution, Selective Distribution strategy also works for the premium segment brands. Here the brand analyzes the market and only opens its outlets in some major cities. For instance, Gucci has its outlets only in major cities where people can afford such expensive products. This distribution strategy is also not divided based on the length of the distribution channel. Instead, their main aim is to reach out their products to the customers. They can afford any distribution because their products consist of higher profit margins.

To Wrap Up

Distribution strategy in marketing plan has a very deep connection with customers. They make the buying process easy for the customers. It attracts more new customers and even sustains them. Thus, it would help if you focused on implementing your business’s best possible distribution strategy. We hope this guide has helped you properly understand the distribution strategy.

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