Distribution channels are one of the classic “4 Ps” of marketing (product, promotion, price, placement a.k.a. distribution). Distribution helps your clients expand their reach to gain market share and increase company value.
Distribution decisions should complement a company’s brand strategy, and tie directly into pricing strategy. The sales process, or steps buyers take before their final purchase decision, are built within each distribution channel, and are fed by promotions or marketing campaigns to drive revenue through the channel.
Distribution Channel Value
Companies can sell through a single channel or through multiple channels that may include:
Direct/sales team: One or more sales teams that your client employs directly
Direct/internet: Selling through your client’s own e-commerce website
Direct/catalog: Selling through your client’s own catalog
Wholesaler/distributor: A company that buys products in bulk from many manufacturers and then re-sells smaller volumes to resellers or retailers
Value-added reseller (VAR)
Expanding existing distribution channels or creating new ones can help businesses significantly grow their market share. It’s possible to increase your client’s revenue and market value an additional 5%, 10% or even 20% by simply improving an underperforming channel or launching a new one. The Consulting M.O. enables you to perform these high-value strategic services, creating substantial measurable value to your client’s top line and enterprise value.
Distribution Channel Services with the Consulting M.O.
Identify Potential Channels. Evaluate how your client’s customers prefer to buy and how to reach more of them through different channels.
Establish a New Channel. Establish the process for setting up a new channel, and define the steps and the roles of each partner, including pricing.
Create Channel Marketing Plan. Design marketing campaigns for your client and channel partners to drive revenue through the channel.
Improve Channel Performance. Track channel partner performance and make recommendations for improvement.
Your clients might need distribution channels strategy if:
The market is growing faster than their revenues or market share
The market is unfamiliar with their brand
Revenues are flat or declining
Existing channels are inefficient or suffer from channel conflict
