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Distribution Channels Strategy

How would you answer the following questions about product sales?

• What are the traditional and alternative distribution channels?
• Do you know to whom you want to sell and why?
• Do you have targeted market niches?
• What is the most appropriate distribution channel(s) to reach those niches?
• Do you understand how the channels operate? And how to motivate them?
• Who should sell your products (direct, representatives, or distributors?
• Do you have a marketing strategy that focuses your sales people, representatives, and distributors?
• Do you know the cost of a sale?

Distribution Channels Strategy is ...

A conscious selection of distribution channels to move products from the manufacturer to the end-user. The choice of distribution channel varies according to the products. Industrial and engineered products require a much different channel than a standardized product. Direct, manufacturers' reps, and distributors sell through the various distribution channels.

Benefits of Distribution Channels Strategy

• Increases sales
• Improves sales coverage
• Reduces selling costs
• Directs marketing strategy
• Clarifies how channels operate

How can Phase 3 help me implement Distribution Channels Strategy?

We help you identify and choose the most appropriate distribution channels. We examine your product complexity, use, sales cycle, and need for post-sale support. We help you determine if the current distribution channel is able to efficiently handle all tasks such as qualifying prospects, gathering presale information, closing the sale, and post-sale services. Together we assess the cost of selling to all niches and customers. We look at the pricing structure in each distribution channel. Based on those factors, we recommend distribution channels and selling approaches. We help you decide who should sell your products and why. We look at the cost of a sale, sales breakeven points and territory breakdown formulas. We provide measuring tools for you to rate the performance of both internal and external sales forces. We help you critically assess your current sales organization in terms of capabilities, interest, and time for serving the targeted niches. We help you discover why companies fail when utilizing independent sales organizations and how to avoid those pitfalls. We confirm that your marketing strategy supports your sales force, which makes the sales force responsible for sales, not marketing strategies.