The most challenging “P” of product marketing — Distribution!
Distribution entails making a product available for purchase by dispersing it through the market. Distribution is the activity of both selling and delivering products and services from manufacturer to customer. This can also be called product distribution. As businesses become more global it becomes important to improve distribution to ensure that customers and all members of the distribution channel are happy. And that’s why the most challenging ‘P’ of product marketing is Distribution. Most often it gets labeled as a “Leaky Bucket” in most businesses.
Distribution is an important P of marketing as, without a function that keeps a track on the relationship between manufacturers and customers, a company cannot ensure the best service. If hiccups happen in distribution, deliveries fall short, customers, retailers and suppliers get annoyed, and trust in the product or service is lost.
Product availability can be through the manufacturer, supplier, distributor, retailer, or wholesaler. Examples of marketing distribution channels include:
- A distributor can be employed by a manufacturer to reach out to suppliers/retailers to purchase their product.
- A supplier can make the stock available on a marketplace for merchants to find and sell.
- A retailer could stock a wide array of products strategically placed across their store to attract customers to buy.
- A wholesaler can build a website so that the customers can order products straight from them.
For product distribution to be truly successful a continuous feedback loop needs to be implemented to ensure everyone is happy with the process and that any improvements that can be made, are made.
Steps for selecting distribution and sales force representation include and this planning is valuable regardless of the size of the business:
- Businesses should Identify how competitors’ products are sold.
- Analysis of strengths, weaknesses, opportunities, and threats for the business is critical.
- Costs of channels and sales force options should be examined.
- Companies should determine which distribution options match their overall marketing strategy.
- Distribution choices should be prioritized .
The right distributor enhances a company’s exposure in the product market and can give an edge in terms of speed and efficiency.The chain of distribution can get confusing as more people are added into the mix. It is important to know the key differences of the individuals who play a role in the distribution process.
Product distribution is one important step that often goes overlooked as brands opt for the cheapest or easiest option rather than devising a valid distribution strategy.
