Purpose and background:
Distribution strategy is regarding how effectively a firm gets its product to customers and end users.
Firms will sell their product on to the buyer (direct distribution) or through intermediaries (indirect distributions).
Scope and responsibilities:
Distribution Mapping strategy is about how an organisation will distribute their product or service to the end user.
The organisation should distribute the merchandise to the user at the proper place at the proper time.
Efficient and effective distribution is vital if the organisation is to fulfill its overall promoting objectives.
If an organisation underestimates demand, profitability will be affected.
The diagram below explains the two distribution channels and the parties involved in the distribution chain:
Distribution Strategies:
The 3 commonest distribution methods area unit mentioned below
Intensive Distribution: Used normally to distribute low priced product or impulse purchases.
For example snacks like chocolates, soft drinks and crisps
Exclusive distribution: Involves limiting distribution to a single specified outlet.
The product is commonly highly priced which requires the intermediary to place much detail in its sell.
For example the sale of vehicles through exclusive dealers.
Selective Distribution: a little variety of shops area unit chosen to distribute the merchandise.
Selective distribution is common with product like computers, televisions home appliances, where customers area unit willing to buy around and wherever makers desire a massive geographical unfold.
Procedure and methodologies:
A) Desk research– Conduct research from existing records without any actual field work
B) Self-completion questionnaires– Physical questionnaire designed to obtain answers from respondents. They are an ideal, simplified tool for solo researchers as there is no requirement for a field force of interviewers.
C) E-surveys– A powerful qualitative tool to collate information from relevant, focused groups of respondents or alternatively from anonymous, but genuine respondents.
D) Observation– One of the oldest techniques in market research; observation is nothing, but mystery shopping done with the help of modern, electronic devices.
E) Data analysis- Qualitative and quantitative data analysis is done by researchers and by using certain software in order to derive an accurate outcome.
