Types of Distribution (Definition, types and strategies)

The distribution can be defined as the relationship of the set of actions that can be carried out from the time the product is made, which starts from the manufacture until its purchase by the consumer, therefore, its objective is to guarantee that the product arrives in perfect condition at the client.

It can be said that the distribution is one of the variables or factors of the market, which is integrates into marketing in conjunction with the product, price and promotion.

This system is very important to achieve guarantee sales of a certain product, this is because it is not enough to have a quality product at prices that are within the competition. Similarly, you need to be able to have easy access for consumers.

Distribution types

Within the marketing channels, there are various types of distribution that have been created to reduce logistics and transportation costs that shorten the distribution process. Within this classification are:

Direct distribution

East type of distribution is related to the one who makes the product and the one who makes it reach the consumer. It is a type of canal with a short route of commercialization, where the product is sold quickly to the consumer, without intermediaries in specific areas.

Indirect distribution

In this case, agents and intermediaries come into play, which can be through a short or long channel. This type of distribution goes directly to the price increase, since it is sold at a intermediary in a price and in turn, this places another price on the product to achieve a benefit from it.

Whichever of the two methods are selected, it must be taken into account which will be the most suitable for the commercial strategy.

Distribution strategies

When making the selection of the type of distribution, it is necessary to put into operation the different distribution strategies to be carried out in the business:

1. Intensive distribution strategy

Distribution is generally carried out through selection outlets. In this way, you can better reach consumers, since the company can capture their interest more.

In this way, a greater number of sales points can be captured, which can vary from general to specific. Typically, these points can market products of the same style.

Advantages of intensive distribution

• Increase in sales, due to the existence of a greater number of buyers who will have access to the product.
• Greater attraction for the product, being known by more people.
• Competitiveness of the brand in the market, due to the increased knowledge of the product as it is found in more surfaces.

2. Selective distribution strategy

In this case the distribution points are restricted, this is due to the filtration that allows choosing those that are much more practical, close to or accessible to the production point. It is a type of distribution that has an intermediate operation between intensive and exclusive distribution that requires a deep Market research.

Also, it requires the application of various specific advertising techniques, which are capable of capturing the consumer's attention to the product.

Advantages of selective distribution

• It is present in the best position in the market or in those that identifies with the product sector.
• The quality standard, the reputation of the product, can be achieved much easier to maintain.
• Increase in the importance of the points of sale, which helps to give greater dedication to the product and to improve international distribution.

3. Exclusive distribution strategy

In this strategy, more exclusive points of sale are chosen and are more limited in order to enhance the prestige of the product. In this way, the company achieves that its product is only sold if the distributor does not sell products that are not within the competition.

This will limit a significant number of intermediaries, allowing exclusive distribution rights. The company tries to obtain sales efforts, through the distributor that it will use to offer more knowledge about the product. This means that this distribution requires the association between the seller and the intermediary.

Advantages of exclusive distribution

• Has selected outlets.
• It requires supervision and quality control of the product by the company.
• Exclusive product association.

Product distribution refers to the way the product is distributed in the market and at points of sale where it will be available to customers, these will be offered or sold to consumers, as well as the selection of the market.

So that a good product distribution, you must determine the type of channel that is going to be used for it to be distributed and also select the market and the points of sale where the product will be offered and sold.