Distribution - what is it? This is an indicator of the distribution of services or goods in a certain territory or taking into account the distribution channel. Two main types of distribution can be distinguished: balanced and numeric (quantitative). If earlier the producer’s market came to the fore, that is, the companies producing goods set their conditions, now the consumer’s market is in the first place. The place of shopping and their convenience is becoming more important. Which, in turn, is reflected in the cost of the product.
Weighted and Numeric Distribution
Weighted, or quality, distribution - what is it? This indicator displays the percentage of product sales in a particular category. To calculate the weighted distribution, only those outlets with at least one product SKU are taken into account.
Numeric, or quantitative, distribution is an indicator that reflects the percentage of outlets in which at least one UKJ product is presented.
Distribution development
To date, the place where a particular product is presented is of particular importance. After all, products of the same category are almost the same, and their cost and packaging. We must not forget that without distribution, the buyer will not be able to purchase the goods physically. Moreover, if it is wrong, a lot less people will buy the product than if it was right.
Distribution of goods is necessary so that the products reach the manufacturer from the end user. As a rule, marketing channels are used for this purpose: transport, logistics, warehousing and retail trade. Unexpected moves at this stage can contribute to a significant breakthrough in sales.
Product Positioning
Many companies are ready to sell their products at a loss in order to enter large supermarkets. They are obliged to cooperate with such stores by positioning, that is, physical distribution is carried out. What is it and how does it depend on positioning? It depends on how and where the product will be presented, what will be the indicator of physical distribution. What it will be: selective, intense or exclusive. For example, representatives of reputable and fashion brand companies are required to ensure that their brand products are not sold in markets or in shopping centers consisting of small pavilions, as this affects the position of this brand.
Multilevel marketing
This approach to sales, as multi-level marketing, allows you to achieve tremendous momentum. But such a distribution (which we have already identified in marketing) has a special position in the minds of consumers. On the one hand, many people with this position are deprived of the opportunity to purchase products that are sold only through their chosen distribution system in ordinary stores. But, nevertheless, the loss of this part of the target audience is compensated by the attraction of additional buyers, who, thanks to this method of distribution, are able to arrange whole presentations on the promotion of goods.
It should be noted that, in principle, mediation is not approved by the public, and not only in Russia, but in almost all countries of the world. It is believed that intermediaries earn money on air, and because of them the final cost of the goods is several times higher than the selling price.