Distribution channels help a company to effectively generate increased revenue if used correctly. These are pathways that can be used to sell company products to end consumers. Sales can be done through a single channel and even multiple ones and include a direct/sales team,Partner Portal – A Good Distribution Network Articles wholesaler/distributor, value-added reseller (VAR), consultant, dealer, retailer, and sales agent/manufacturer representative. Such a complex interdependence usually requires the use of a partner portal to increase communication and collaboration between channel members.
Distribution is an essential part of a company’s entire marketing strategy because it helps expand its reach and increase the growth of revenue. It is one of the classic “4 P’s” of marketing which are product, promotion, price and placement which is also known as distribution. There are three examples of this strategy, and they are: direct to end users; sell through a dealer network and; sell through a VAR (value-added reseller).
Direct to End Users – For this type of distribution, a company would usually have a sales team that directly sells to companies. A second product line is made available for small businesses and the company directly sells this line to end-users or consumers through a website and marketing campaigns instead of utilizing a sales team.
Sell through a Dealer Network – For this type, a company will have two distribution channels to cater to two markets. A product is sold through a geographical network of dealers who sell products in their respective locations or areas. The dealers may opt to service the product. Dealers are actually customers, too, and it is the company’s responsibility to provide them with a strong program to train and support them with good marketing campaigns, resources and other useful materials.
Sell through a VAR (Value-Added Reseller) – A company can sell a product to another business that “bundles” it with services or other products and then re-sells them to the market. The bundling entity is called a VAR because it adds value to the company product. These businesses may collaborate with an end consumer in other to point out the right products and configurations. Once it has been determined, a system will be implemented which includes the product itself.
In order to guarantee a good distribution network, it is important to provide effective programs that focus on the needs of customers. If they need personalized services, then the company can employ the help of a local dealer network or reseller program to provide such a need. If they prefer shopping online, then an e-commerce website can be created which features a fulfillment system and directly sells products. Another approach to this is by selling the product to another online retailer or distributor to offer the product on their websites. A good way to address customer needs is by building a specialized sales team that prospect and directly closes deals with end users.
It is important to treat the whole channel as a group of customers because they buy and re-sell a company’s product. Wholesalers, resellers, retailers, consultants and agents possess their own resources and business relationships that can truly give a company an advantage in the market. Utilizing them requires an understanding of their needs then delivering st