Strategic plan of distribution

Let's listen!

Good Morning.
My name is Susana
Brown, how can I
help you?

Good Morning, Im Fiorella Br yan.

I would like to have some infor-
mation about the best way to sell
my product. I produce handcraft
jewels and I want to distribute
throughout Colombia; especially,
in Bogot and Medelln.

Thats 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 market-
ing process, improving customer services and reducing
costs. (Tompkins and Harmelink, 1991)

One of those factors refers to the distribution chan-

nel 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 ob-
served in the following diagram.

CONSUMER

The commercial target of

INTERMEDIARY
the distribution channel.

PRODUCER

The initial point of the

DISTRIBUTION distribution channel;
CHANNEL people or companies who
manufactures goods or
It is the way that goods or services.
services use to pass from
the producer to the end
consumer.

Diagram 1. Distribution channel

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 Strategic plan of distribution

Determining factors for selecting distribution channels

Another aspect that is important to talk about is the deter-

mining 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 tangi-
ble or intangible and
also, could have a
variety of attributes
such as, color, qual-
ity, brand, packaging
and price. Addition-
ally, the customer
service quality could
affect positively the
consumers mind.

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 Strategic plan of distribution

Other people who partici-

pate in the process

3. INTERMEDIARIES:
it refers to those people
or companies who are
placed between produc-
ers and consumers or
end users such as whole-
salers, distributors and
retailers.

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

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 Strategic plan of distribution

Oh, thank you! Im ver y grateful,

because the information you gave
me has been ver y interesting. I un-
derstood the impor tance of choos-
ing a suitable channel of distribu-
tion to reach the main objectives
of my project.

Additionally, dont forget to ana-

lyze aspect such as: kind of product,
marker, and the companys 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 Plan-

ning: A Distribution Imperative. Document # 50980. In-
dustrial Development, December, 1991. Retrieved from
http://www.conway.com/geofacts/pdf/50980.pdf.

Thompson, I. (2007). Tipos de canales de distribucin.

Retrieved from http://www.promonegocios.net/dis-
tribucion/tipos-canales-distribucion.html.

Imgenes de apoyo recuperadas de

http://www.morguefile.com

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