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Strategic plan of distribution

Let's listen! Good Morning. My name is Susana Brown, how can I help you?

Good Morning, I´m Fiorella Br yan. I would like to have some information about the best way to sell my product. I produce handcraft jewels and I want to distribute throughout Colombia; especially, in Bogotá and Medellín.

That´s ver y interesting. I will explain some topics that you need for deciding on the best option. Let ’s listen to some information from market exper ts.

Strategic plan of distribution is an important tool that companies have implemented in order to organize several factors that are interconnected in the marketing process; improving customer services and costs. Distribution channel means the route through which goods or services pass from the producer to the end consumer. Each fragment of the marketing process can be observed in the following diagram.

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Strategic plan of distribution

Introduction Strategic planning of production is an important tool that companies implement in order to organize the several factors that are interconnected in the marketing process, improving customer services and reducing costs. (Tompkins and Harmelink, 1991) One of those factors refers to the distribution channel that means the route through which goods or services pass from the producer to the end consumer. Each fragment of the marketing process can be observed in the following diagram.

CONSUMER

INTERMEDIARY

The commercial target of the distribution channel.

PRODUCER

DISTRIBUTION CHANNEL It is the way that goods or services use to pass from the producer to the end consumer.

The initial point of the distribution channel; people or companies who manufactures goods or services.

Diagram 1. Distribution channel

Servicio Nacional de Aprendizaje - SENA Reservados todos los derechos 2013.

Strategic plan of distribution

Determining factors for selecting distribution channels Another aspect that is important to talk about is the determining factors for selecting distribution channels.

1. MARKET: they could be people or organizations which have different kind of necessities to be satisfied.

The feature of products

2. PRODUCT: they could be tangible or intangible and also, could have a variety of attributes such as, color, quality, brand, packaging and price. Additionally, the customer service quality could affect positively the consumer´s mind.

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Strategic plan of distribution

Other people who participate in the process

3. INTERMEDIARIES: it refers to those people or companies who are placed between producers and consumers or end users such as wholesalers, distributors and retailers.

4. COMPANY: they could be organizations formed by people, goods, common goals and achievements to satisfy customers.

Servicio Nacional de Aprendizaje - SENA Reservados todos los derechos 2013.

Strategic plan of distribution

Oh, thank you! I´m ver y grateful, because the information you gave me has been ver y interesting. I understood the impor tance of choosing a suitable channel of distribution to reach the main objectives of my project.

Additionally, don´t forget to analyze aspect such as: kind of product, marker, and the company´s nature because it is the correct route for being successful. If you have any other doubt you can come here.

References Tompkins, J., and Harmelink, D. Strategic Master Planning: A Distribution Imperative. Document # 50980. Industrial Development, December, 1991. Retrieved from http://www.conway.com/geofacts/pdf/50980.pdf. Thompson, I. (2007). Tipos de canales de distribución. Retrieved from http://www.promonegocios.net/distribucion/tipos-canales-distribucion.html. Imágenes de apoyo recuperadas de http://www.morguefile.com

Servicio Nacional de Aprendizaje - SENA Reservados todos los derechos 2013.