Distribution - what is this indicator?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

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. There are two main types of distribution: weighted and numerical (quantitative). If earlier the manufacturer's market came to the fore, that is, companies producing goods set their own conditions, now the consumer market is in the first place. The place of shopping and their convenience becomes more important. Which, in turn, is reflected in the cost of the product.

Weighted and numerical distribution

Weighted or quality distribution - what is it? This metric displays the share of product sales in a particular category. To calculate the weighted distribution, only those outlets that have at least one SKU of the product are taken into account.

Numeric, or quantitative, distribution is an indicator that reflects the percentageoutlets with at least one SKU of products.

Development of distribution

Today, the place where a certain 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 product physically. At the same time, if it is wrong, much fewer people will buy the product than if it is correct.

Distribution of goods is necessary for the products to reach the end consumer from the manufacturer. As a rule, marketing channels are used for this purpose: transport, logistics, warehousing and retail. Unexpected moves at this stage can lead to a significant sales breakthrough.

Product positioning

Many companies, in order to enter the big supermarkets, are ready to sell their products almost at a loss. Positioning obliges them to cooperate with such stores, that is, physical distribution is carried out. What is it and how does it depend on positioning? How and where the product will be presented depends on what the indicator of physical distribution will be. What will it be: selective, intensive or exclusive. For example, representatives of reputable and fashionable brand companies are required to ensure that their brand products are not sold in markets or shopping centers consisting of small pavilions, as this affects the position of this brand.

Multilevelmarketing

This approach to sales, like multi-level marketing, allows you to achieve enormous turnover. But such distribution (what it is in marketing, we have already defined) occupies 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 sold only through the chosen distribution system in ordinary stores. But, nevertheless, the loss of this part of the target audience is compensated by attracting additional buyers, who, thanks to this distribution method, get the opportunity to arrange entire presentations to promote the product.

It should be noted that mediation is generally not approved by the public, and not only in Russia, but in almost all countries of the world. It is believed that intermediaries earn on the air, and because of them, the final cost of the goods is several times higher than the selling price.