What control do I want to have over the distribution of my products or services?
Where do I want my products or services to reach?
What budget do I have to determine the distribution channel?
Can I reach the end consumer with my sales team or do I need help from intermediaries?
The answers to these questions will give you an idea of the channel your business needs. The next step is to analyze and research.
Who is your ideal customer and what are their spending habits?
It’s nothing new in marketing; any strategy requires knowing your target audience: needs, problems, and interests, whether they buy online or in person, etc.
All of this data will provide you with information to help you determine the best distribution channel for your business.
What distribution channels could you access?
Investigate what your possible alternatives would be, for example, if it’s an indirect channel, talk to intermediaries, understand the available options, begin establishing possible agreements or negotiations, etc.
What distribution volume do you need?
For example, how much you produce per day, how much you need to distribute, and depending on that, what the shipping prices for your products would be.
What is your business model? What is your plan to achieve your goals?
The marketing distribution channel should be aligned with your needs, capabilities, and the strategic objectives you established from the outset.
To summarize, what is the role or what are the main functions of marketing distribution channels?
Ensure the availability of products or services to the end consumer.
Building a secure network from the moment of manufacturing until it reaches the hands of the consumer.
Provide product or service information to give the brand greater visibility.
Personalize services and provide guarantees to the consumer.
Participate in promotional actions or strategies.
Strengthen the image of the business or company.
Reach hard-to-reach places so that all consumers have the opportunity to purchase the product or service.
Examples of major brands with effective distribution channels
➡️Amazon
It uses a direct distribution channel; the company is responsible for promoting, marketing, and distributing its own products or services.
Amazon manufactures its own products or services (it is also a distributor of other brands).
They design their own distribution channel and are the ones who put the product in the hands of the consumer.
➡️ Coca-cola
The famous soft drink brand relies on several distribution channels (direct, indirect, and selective) because it produces and distributes its products in all countries with the help of wholesalers and retailers, but it also has its own distribution.
➡️ Pfizer
It is one of the leading pharmaceutical companies worldwide, and despite having international recognition, its distribution channel is exclusive, because they distribute their products to very specific sectors (medical representatives, pharmacies, healthcare sector, etc.).