Sales and distribution is the backbone of any strong business entity as it directly contributes to the bottomline. Developing an appropriate sales support distribution strategy takes patience, skills, market knowledge and a shrewd foresight. What kind of distribution strategy you implement for your business will largely depend on the nature of your business.
Evaluation of business model for cementing distribution network
Each company has a distinct business model and some clear business processes. The distribution strategy of a company should be in line with the nature of its products and services. There are certain parameters that will help to set the distribution strategy and they are relative nature of complexity, differentiating points from competitors, value offered as against price charged and estimated sales volume. There should be a clearly defined market segment that you are targeting.
Obviously sales and support distribution strategy can only be formalised in relation to the activities of other competitors. Solid market research is important in this field. It’s a good idea to talk to the ground staff working at the field level for other companies while assimilating data.
Study the impact of intermediate agents
When you are formalising a distribution strategy it’s important to understand the entity that will be interacting with the end user.
For example if you are selling a fast moving consumer good then the entity interacting with the customer is the retailer/shop keeper. If on the other hand you are running an e business then the customers are interacting with the intermediary i.e. your website. In both cases intermediary performance plays a key role.
You have to spend some time learning about the operational model of your intermediary and learn how to fit in your products to their advantage.