It’s crucial for businesses to optimize every part of their sales prospects. While marketing and customer loyalty are important, so is the right distribution strategy. These distribution strategies used by businesses are great for keeping demand high while targeting specific markets. This maximizes as much profit as possible and leads to greater total sales for future quarters.
Direct distribution refers to when manufacturers directly sell to customers. Ecommerce websites, catalogs, and phone orders allow customers to order directly from manufacturers. Certain industries, like apparel, may utilize this type better to target certain markets. It’s important to note that companies implementing a direct distribution strategy must account for warehouses, vehicles, delivery, and so on to distribute their products to the consumer.
Unlike direct distribution, indirect distribution utilizes other sellers to distribute products. Intermediaries assist in product placement to reach customers in the most optimal location based on habits or preferences. Retail stores are the most common form of indirect distribution. This can be useful for a wide variety of products, from those that require a specific marketing campaign to routine, everyday items that don’t require much thought.
This is when products sell at as many retail locations as possible. Ultimately, large volumes of goods sell at numerous locations. Often, these items are routine purchases, like gum or magazines. One of the benefits of intensive distribution is that it does not require much effort to sell these items.
Exclusive distribution is when specific retailers make a deal with companies to exclusively sell their products. These products are typically exclusive, high-end items as limited availaility causes greater demand for the product. Similarly, companies don’t have to use other retailers to distribute these items. Certain companies—usually luxury companies—use their own storefronts to sell their items. This creates a greater profit margin for the business since the greater demand for the product leads to more total sales.
The last distribution strategy is known as selective distribution. It includes both intensive and exclusive distribution techniques, where products sell from multiple, yet still limited, locations. This allows companies to reach out to wider target audiences without losing any credibility. High-end clothing brands, for example, can distribute their items through select stores while still maintaining their luxury status.
No matter which type of distribution you choose, you will need a way to transport the merchandise to the retailer. That’s where we at 18 Wheels come in. As one of the best Vancouver trucking companies, we specialize in every aspect of logistics, such as trucking, warehouse, and packaging. We service the Vancouver area, the Pacific Northwest, LA, and Columbus, Ohio. Don’t forget to contact us with any questions or concerns you have.
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