Aviation Leadership and Management Skills Development - Marketing Distribution Channel Considerations
Sofema Online (SOL) www.sofemaonline.com considers Distribution Channels
Introduction – What do we understand by Marketing Distribution Channel Considerations
Placement or product distribution is always going to be a major consideration whether you’re selling a physical product, software application or digital service.
» Where are people going to find your products or services?
» Where can they purchase them?
» Where are they going to use them?
» How are you going to manage inventory?
Regardless of changes that impact our industry your products’ placement and distribution is a fundamental part of your brand identity, this understanding should always play a pivotal role in your marketing strategy.
Distribution channels are the various methods by which companies deliver products and services to their customers
» Some businesses sell directly to their customers
» Other businesses use a retailer or wholesaler
» Another possibility is to employ an agent as an intermediary.
The 8 Channels of Marketing Driven Distribution
· Direct Sales
· Retailer
· Intensive Distribution
· Selective Distribution
· Exclusive Distributor
· Dual Distribution
· Wholesaler
· Channel Partners or Value-Added Retailers
What are the factors which impact the choice of Distribution Channel?
» Nature of the Product
» Nature of the market
» Nature of Middlemen
» Nature and size of the manufacturing unit
» Regulations and Policies Considerations
» Competition.
Reality - Check Sometimes businesses choose a mix of multiple distribution channels to sell their products (Dual Distribution). Such behavior allows brands to reach a larger audience by employing varied purchase options.
» Working with wholesalers and retailers
» Maintaining branded storefronts to sell directly.
Distribution Channel Challenges & Considerations
» Concentrated customers mean shorter distribution channels
o Shorter Distribution Channels enable greater control over the process (Think Perishable Goods)
» Widely dispersed buyers create difficulty in establishing links to customers
» Preferences regarding
o Tastes
o Likes & Dislikes of Customers
o Payment Options
o After-Sales and Technical Support
Considering the Cost of Distribution:
» Higher costs of distribution will result in the increased cost of the product.
» The manufacturer is minded to select the most economical distribution channel with reference to the desired level of marketing services required
What are Channel partners or value-added resellers (VAR)?
Many B2B acts as VAR companies sell through the channel (means without selling to the end-user!)
» Interact with other Channel Partners
o Buy
o Repackage
o Sell “on”
What Makes it Value-Added?
» The inclusion of new features and services
» Potential Product Improvements
» Enhanced Appeal (appealing called secret sauce)
Next Steps
Please email team@sassofia.com with any comments, questions, or suggestions
Sofema Online introduces a new series of courses focused on the development of Soft Skills Aviation Leadership and Management Skills Development – see here for details of our Aviation Leadership Diploma:
