DISTRIBUTION

STRATEGY AND THE

STRATEGIC SELLING
CYCLE
Distribution Strategy

Mainly decided by
keeping the top
management in loop
because it affects
overall operation
Summarized with three
main points:
 How to get the product from
the manufacturing point to the
end customer
 How to control costs and save
time while executing the
distribution strategy
 How to build a competitive
advantage through distribution
 TWO TYPES OF DISTRIBUTION

Direct Indirect
Distribution
company either  product reaches
Distribution
directly sends the end
the product to customer
end customer or through
when the numerous
DISTRIBUTION MIX
Coverage
having the proper types
of outlet in geographical area
is important

Placement
a product has placement
when it is carried in a store
Volume
right inventory level at
the stores is critical

Display
Right shelf and off-shell
allocations and display has
a higher possibility to be
chosen
 Pricing
right resale prices
promotes healthy competition
among dealers

 Goodwill
refers to the best
relationship between a
supplier and his channel
members
Strategic Selling Cycle
 shows a comparative selling
process of a firm targeting end
users versus distribution channels

Distribution
Channels
 Performs the work of moving
products from manufacturers
to final consumer or business
users
Manufacturers

Distributors

Workers/ Labor

Retailers

End Users
 Distribution Strategy

Dire Indirect
ct
Consumer Services: Consumer Business Services:
and Goods: Goods: Producer-
Business Producer 1. P-r-c Producer- Agent-
goods: - User 2. P-w-r-c Industrial- Consume
Producer- 3. P-a-r-c Distributor r
Consumer 4.P-a-w-r-c -User
 Intensive
Distributio
n
Exclusive Selective
Distribution Distributio
n

DISTRIBUTIO
N STRATEGY
THE END!