Distribution adds value to selling by providing time, place, and possession utility to consumers. A distribution strategy considers factors like customer service levels, distribution objectives, activities, organization, policies, key performance indicators (KPIs), and critical success factors (CSFs). Setting objectives for channel partners and monitoring their performance are important. Distribution channels can be classified as sales, delivery, or service channels depending on their function.

1. HOW DOES DISTRIBUTION ADD
VALUE
 The distribution function using the network of
the channel partners adds value to the selling
function by providing
 Time
 Place and
 Possession utility to the consumer.
 Ex : Buy a television

2. DISTRIBUTION CHANNEL STRATEGY
Corporate strategy
Marketing strategy
Distribution strategy

3. THE DISTRIBUTION STRATEGY COULD
BE LOOKING AT SOME OF THESE
FACTORS
1. Customer service levels
2. Setting distribution objectives
3. Set of activities
4. The distribution organization
5. Policy and procedure
6. Key performance indicators
7. Critical success factors

4. CUSTOMER SERVICE LEVELS
 The nature of the industry in which the company
is operating, its products and services, its market
share and the nature of competition help define
the level of customer service the firm can
promise its customers.

5. SETTING DISTRIBUTION
OBJECTIVES
 The customers also have certain expectations
from the company and its channel partners
 Ex: Retailers selling HUL products would want
the company and its distributors to service them
in such a way that they hold minimum stocks
and at the same time never run out of stocks.

6. SET OF ACTIVITIES
 This task is normally performed jointly by the
company sales personnel along with the channel
partners. Some of these steps could be.
 Periodic sales forecasts by geography
 Collecting of sales proceeds
 Carrying out promotional activities

7. THE DISTRIBUTION ORGANISATION
The firm has to now determine as to who will do
what. this step will healp define the organisation
structure to support the entire strategy.
Selecting clear objectives for each of the channel
partners and systems to monitor the activities
and measure the performance of the channel
partners.

8. POLICY AND PROCEDURE
 It is expected that the company sales personnel
and its channel partners understand what is
expected of them and discharge their roles and
responsibilities faithfully.
 The operations manual is capable of answering
any query on procedure which the sales people
or the channel

9. KEY PERFORMANCE INDICATORS
 The effectiveness of the strategy can only be
judged if the company has agreed on certain
measurement criteria with its channel partners
Some of the most popular K P I are
 Achievement of market shares
 Zero complaints from the customers
 Market coverage with ready stocks
 Minimize damages to products

10. CRITICAL SUCCESS FACTORS
 The distribution strategy also will be successful
if it has the support and backing of the top
management of the company.
Some of the CSF are
 Clear, transparent and unambiguous policy and
procedure.
 Fair dealing of the company with all its partners.
 Clearly defined customer service policy.

11. AN OVERVIEW OF DISTRIBUTION
CHANNELS
 A distribution channel is a group of people and
firm involved in the transfer of title or ownership
as the product moves from the producer to
ultimate consumer.

12. DISTRIBUTION CHANNELS CAN
BRODLY BE CLASSIFIED AS
 Sales channel
 Delivery channel
 Service channel

13. SALES CHANNEL
 Which has the function of motivating buyers,
sharing information between the consumer and
the company,negotiationg fair bargains for the
consumer and financing the transaction.

14. DELIVERY CHANNEL
 Which is only meant for physical transactions.
SERVICE CHANNEL
Which performs after sales service like a Maruti
service station