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Distribution (business) - Definition |
| Related Words: Allocation, Allotment, Apportionment, Arrangement, Array, Assignment, Attenuation, Broadcast, Broadcasting, Circulation, Classification, Codification, Collation, Collocation, Constitution, Deployment, Diffraction, Diffusion, Dilution, Dispersion |
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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)?
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