Distribution - what is this indicator?

Distribution - what is it? This is an indicator of the distribution of services or goods in a certain territory or taking into account the distribution channel. There are two main types of distribution: weighted and numeric (quantitative). If the producer market previously came to the forefront, that is, the companies that produce goods set their own terms, but now the consumer market is in the first place. The place of purchase and their convenience becomes more important. What, in turn, affects the value of the product.

Weighted and numeric distribution

Weighted, or qualitative, distribution - what is it? This indicator shows the share of product sales in a certain category. To calculate a weighted distribution, only those outlets with at least one SKY product are taken into account.

Numerical, or quantitative, distribution is an indicator reflecting the percentage of outlets in which at least one SKU is represented.

Development of distribution

To date, it is the place in which a particular product is presented that is of particular importance. After all, products of the same category are almost identical, and their cost and packaging. We must not forget that without the distribution, the buyer will not be able to purchase the goods physically. However, if it is wrong, the goods will be bought by far fewer people than if it were the right one.

Distribution of goods is necessary in order for products to reach the manufacturer from the end user. As a rule, marketing channels are used for this purpose: transport, logistics, warehousing and retail trade. Unexpected moves at this stage can contribute to a significant breakthrough in sales.

Product positioning

Many companies in order to enter the large supermarkets, are ready to sell their products almost at a loss. To cooperate with such stores, their positioning is obligatory, that is, physical distribution is carried out. What is it and how does it depend on positioning? From how and where the product will be presented, depends on what the indicator of physical distribution will be. What it will be: selective, intensive or exclusive. For example, representatives of companies of a solid and fashionable brand are required to ensure that their brand products are not sold in markets or in shopping centers consisting of small pavilions, since this affects the positions of this brand.

Multilevel Marketing

This approach to sales, as a multi-level marketing, allows you to achieve tremendous turnover. But such a distribution (which we have already determined in marketing) has a special position in the minds of consumers. On the one hand, many people at this position are deprived of the opportunity to purchase products sold only through the selected distribution system in ordinary stores. But, nevertheless, the loss of this part of the target audience is compensated by attracting additional customers, who thanks to this method of distribution get the opportunity to organize whole presentations on the promotion of the goods.

It should be noted that mediation in principle is not approved by the public, and not only in Russia, but in virtually all countries of the world. It is believed that intermediaries earn on air, and because of them the final cost of the goods is several times higher than the selling price.