Distribution (business)

Distribution is one of the four aspects of marketing. The other three parts of the marketing mix are product management, pricing, and promotion. Distribution deals with logistics: how to get the product or service to the customer. It must answer questions such as:

• What kind of distribution channel to use?
• Should the product be sold through a retailer?
• Should the product be distributed through wholesale?
• Should multi-level marketing channels be used?
• How long should the channel be (how many members)?
• Where should the product or service be available?
• When should the product or service be available?
• Should distribution be exclusive, selective or extensive?
• Who should control the channel (referred to as the channel captain)?
• Should channel relationships be informal or contractual?
• Should channel members share advertising (referred to as co-op ads)?
• Should electronic methods of distribution be used?
• Are there physical distribution and logistical issues to deal with?
• What will it cost to keep an inventory of products on store shelves and in channel warehouses (referred to as filling the pipeline)?

See Also:

• marketing,
• marketing plan
• marketing management
• Logistics