Distribution

Distribution

Distribution Jonathan Poland

Distribution is the process of making a product or service available for use or consumption by consumers or businesses. It involves a range of activities, such as transportation, warehousing, and inventory management, that ensure that the product or service is available in the right quantity, at the right time, and in the right place. Distribution is an important part of the supply chain, as it connects the producers of goods and services with the consumers who need them. It can also play a role in pricing, as the cost of distribution is often included in the price of the product or service.

Products and services are distributed by channels such as direct selling, digital commerce, retail locations and partners. A distribution strategy may include several channels with a separate pricing strategy for each. It is also common for a distribution strategy to include methods of managing channel partners such as offering incentives to meet sales goals. Distribution typically has a geographical element and it’s common to use different channels from one region to the next. For example, partners may be used to access international markets. The following are examples of distribution.

Retail
An organic food brand opens its own chain of retail shops.

Retail Partners
A toy manufacturers sells through a network of retail partners.

International Retail Partners
A French furniture company operates its own retail locations in France and sells through retail partners in 18 other countries.

Wholesale
A sugar refiner sells to a sugar wholesaler.

Personal Selling
An information security consulting company sells its services directly to clients by networking at security and IT events.

Direct Marketing
An electronics company sells devices with television ads and a phone number.

Digital / Internet
A cloud services provider sells its services exclusively through its website using internet advertising.

Direct Mail
A fashion brand develops a list of customers and sends them a full product catalog each season that drives telephone, internet and retail purchases.

Dealer Network
A automotive company sells through a network of authorized independently owned dealerships.

Value Added Reseller
A solar panel manufacturer partners with construction companies who sell the panels as an option on new buildings.

Sales Agents
A property developer sells through partnerships with a variety of sales agents.

Learn More
Autonomous System Jonathan Poland

Autonomous System

An autonomous system is a system that is capable of functioning independently, without the need for human intervention. Autonomous systems…

Process Efficiency Jonathan Poland

Process Efficiency

Process efficiency refers to the effectiveness of a process in achieving its intended outcomes, while minimizing waste and inefficiency. A…

Innovation Metrics Jonathan Poland

Innovation Metrics

Innovation metrics are tools used to assess the innovation efforts of a company. It can be challenging to accurately measure…

Opportunity Cost Jonathan Poland

Opportunity Cost

Opportunity cost is the value of the next best alternative that is given up as a result of making a…

Product Extension Jonathan Poland

Product Extension

Product extension is the practice of introducing new products or product lines that are related to a company’s existing products.…

Digital Assets Jonathan Poland

Digital Assets

Digital assets are electronic representations of value that can be traded, stored, and managed using decentralized digital technologies such as…

Bias for Action Jonathan Poland

Bias for Action

Bias for action is a mindset or approach that emphasizes the importance of taking action quickly, without extensive thought or…

Quantum Computing Jonathan Poland

Quantum Computing

Quantum computing is a fascinating and rapidly evolving field that seeks to harness the principles of quantum mechanics to perform…

Procurement Risk Jonathan Poland

Procurement Risk

Procurement risk is the risk of financial loss or other negative consequences that may arise from the process of procuring…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

What is Supply? Jonathan Poland

What is Supply?

Supply refers to the amount of a product or service that is available for purchase at a given price. In…

Internal Branding Jonathan Poland

Internal Branding

Internal branding involves creating a strong brand identity within the company itself, rather than just focusing on marketing to customers.…

Systematic Risk Jonathan Poland

Systematic Risk

Systemic risk is the risk that a problem in one part of the financial system will have broader impacts on…

Job Levels Jonathan Poland

Job Levels

Job levels, also known as career levels or job grades, refer to the hierarchical structure within an organization. They are…

Bottleneck Jonathan Poland

Bottleneck

A bottleneck refers to a point of constriction or reduction in capacity that can limit productivity, efficiency, or speed. It…

Post Sales Jonathan Poland

Post Sales

After a sale is made, post-sales processes kick in to fulfill the customer’s expectations and strengthen the relationship. This can…

Business Strategy Examples Jonathan Poland

Business Strategy Examples

A business strategy refers to a long-term plan that outlines the future direction of a company and how it will…

What is Promotion? Jonathan Poland

What is Promotion?

Promotion refers to any marketing strategy that is aimed at increasing recognition, awareness, and interest in a brand, product, or…

Window of Opportunity Jonathan Poland

Window of Opportunity

The window of opportunity is a concept that refers to a limited time period during which an opportunity is available…