Distribution Strategy and the Strategic Selling Cycle

DISTRIBUTION STRATEGY AND THE STRATEGIC SELLING CYCLE

DISTRIBUTION MIX 

COVERAGE 



HAVING THE PROPER TYPES OF OUTLET IN GEOGRAPHICAL

PLACEMENT 

HAVING A RIGHT TARGET NUMBER OF OUTLETS TO ENSURE CUSTOMER’S UTMOST CONVENIENCE



PLACE UTILITY FOR CONSUMER CONVIENENCE CALLS FOR INTENSIVE DISTRIBUTION SO THAT CUSTOMERS MAY GET THE PRODUCT WHERE THEY WANT THEM

DISTRIBUTION MIX 

VOLUME THE RIGHT INVENTORY LEVEL IN THE STORES IS CRITICAL 

TOO MUCH INVENTORY OR “OVERLOADING” THE OUTLETS, IS UNHEALTHY AS IT GOES AGAINST HOW A CHANNEL MEMBER NORMALLY EARNS A PROFIT 

SMALL AMOUT OF INVENTORY MAY RESULT IN OUT OF STOCK SITUATIONS  

DISPLAY 

THE RIGHT SHELF AND OFF-SHELF LOCATIONS PLUS ADEQUATE DISPLAY SPACE ASSURE MARKETERSA HIGHER PROBABILITY THAT CONSUMERS WILL CHOOSE THEIR BRAND OVER COMPETITION

DISTRIBUTION MIX 



PRICING 

HAVING THE RIGHT RESALE PROMOTES HEALTHY COMPETITION AMONG DEALERS



PRICE WARS ARE USUALLY AVOIDED, AS DEALERS DO NOT GAIN ANYTHING IN THE END

GOODWILL 

REFERS TO THE BEST RELATIONSHIP BETWEEN A SUPPLIER AND HIS CHANNEL MEMBERS



ENABLES MARKETERS TO HAVE GOOD DISPLAY SPACE, AND IN SOME CASES ENABLES FIRMS TO HAVE ADVANCED NOTICE ANOUT IMPENDING COMPETITIVE PROMOTIONAL ACTIVITIES OR PRICE MOVEMENTS

STRATEGIC SELLING CYCLE 

SELLING TO END-USERS 

PROSPECTING ------ PRE APPROACH ---- APPROACH --- SALES PROBING --- PRESENTATION --- HANDLING OBJECTION --- DEMOMNSTRATION --- CLOSING

 SELLING 

TO DISTRIBUTION CHANNELS

ROUTINE OBSERVATION --- DISPLAY CHECK --- WAREHOUSE CHECK --- COLLECTION --- PRESENTATION --- HANDLING OBJECTIONS --- SELL-OUT PLAN --- CLOSING

SELLING TO END-USERS 

PROSPECTING 

IDENTIFYING QUALIFIED POTENTIAL CUSTOMERS

 THE

SALES PERSON MUST OFTEN APPROACH MANY PROSPECTS TO GET JUST A FEW SALES SALES

PEOPLE CAN ASK CURRENT CUSTOMERS FOR REFERRALS OR SEARCH FOR PROSPECTS IN DIRECTORIES OR ON THE WEB AND TRACK DOWN LEADS USING TELEPHONE AND DIRECT-MAIL PROSPECTS

CAN BE QUALIFIED BY LOOKING AT THEIR FINANCIAL ABILITY, VOLUME OF BUSINESS, SPECIAL NEED, LOCATION AND POSSIBILITIES FOR GROWTH 

PRE-APPROACH 

THE SALES PERSON LEARNS AS MUCH AS POSSIBLE ABOUT A PROSPECTIVE CUSTOMER BEFORE MAKING A SALES CALL

SELLING TO END-USERS 

APPROACH THE

TIME 

SALESPERSON MEETS THE CUSTOMER FOR THE VERY FIRST

PRESENTATION AND DEMONSTRATION THE

STEP IN THE SELLING PROCESS IN WHICH THE SALESPERSON TELLS THE “VALUE STORY” TO THE BUYER, SHOWING HOW THE COMPANY’S OFFER SOLVES THE CUSTOMER’S PROBLEMS 

HANDLING OBJECTIONS THE

SALES PERSON SEEK OUT, CLARIFIES ND OVERCOMES CUSTOMER OBJECTIONS TO BUYING

SELLING TO END-USERS 

CLOSING THE

SALESPERSON ASKS THE CUSTOMER FOR AN ORDER 

FOLLOW-UP THE

SALESPERSON FOLLOWS UP AFTER THE SALE TO ENSURE CUSTOMER SATISFACTION AND REPEAT BUSINESS

SELLING TO DISTRIBUTION CHANNELS 

ROUTINE OBSERVATION THE

MARKETER TRIES TO EXPLOIT OR A THREAT TO COUNTER OR PRE-EMPT 

DISPLAY CHECK VISIT

THE SELLING AREA OF THE RETAILER ON HIS PRODUCT’S PLACEMENT AND DISPLAY 

WAREHOUSE CHECK DONE

TO DETERMINE THE INVENTORY LEVEL OF THE FIRM’S PRODUCTS BEFORE COLLECTION OF ACCOUNTS IS DONE

SELLING TO DISTRIBUTION CHANNELS 

COLLECTION THE

VOLUME FOR DELIVERY IS BASED ON AN AGREED JOINT FORECAST QUANTITY BETWEEN MANUFACTURER AND RETAILER. 

EFFICIENT REPLENISHMENT AND OPERATING SYSTEM (EROS) AUTOMATED

WAY RETAILERS COMPUTE STOCK REPLENISHMENT BASED ON ACTUAL CONSUMER OFF-TAKE KNOWN THRU THE POINT-OF-SALE SCANNERS LOCATED IN THE CHECKOUT COUNTER OF THE SUPERMARKETS

SELLING TO DISTRIBUTION CHANNELS 

PRESENTATION STAGE THE

MARKETER WOULD VISIT THE RETAILER TO INTRODUCE NEW PRODUCTS, EXPLAIN NEW RESEARCHES, LAUNCH NEW PROMOTIONS, SHOW NEW DISPLAY MATERIALS OR INTRODUCE A NEW MEMBER OF HE TEAM

DISTRIBUTION CHANNELS 

PERFORMS THE WORK OF MOVING PRODUCTS FROM MANUFACTURERS TO FINAL CONSUMERS OR BUSINESS USERS



A GOOD DISTRIBUTION CHANNEL SHORTEN THE TIME, PLACE, AND POSSESSION GAPS BETWEEN THE MANUFACTURERS AND CONSUMERS

DISTRIBUTION CHANNELS 

DISTRIBUTORS APPOINTED

TO PERFORM THE DISTRIBUTION FOR MANUFACTURERS IN MAKING THEIR PRODUCTS AVAILBLE DISTRIBUTORS

MAY SELL TO WHOLESALERS OR RETAILERS OR MAY EVEN GO DIRECTLY TO CONSUMERS 

WHOLESALING ACTIVITIES

OF A PERSON OR ORGANIZATIONS THAT SELL TO THOSE WHO BUY FOR RESALE (RETAILERS) OR BUSINESS USE (INDUSTRIAL, INSTITUTIONAL, AND COMMERCE USERS). THEY

LESSEN THE INTERACTION BETWEEN MANUFACTURERS /PRINCIPALS ND RETAILERS

DISTRIBUTION CHANNELS 

DIVISORIA LOCATED

IN TONDO, MANILA AND IS THE CENTER OF TRADE BETWEEN METROM MANILA AND THE PROVINCES WHOLESALERS

IN DIVISORIA PURCHASE PRODUCTS ON VOLUME BASIS AND MOSTLY ENJOY VOLUME REBATE ARRANGEMENTS WITH MANUFACTURERS OR DISTRIBUTORS 

JOBBERS ARE WHOLESALERS WHO ALSO PROVIDE WAREHOUSING SPACE FOR MANUFACTURERS AND DISTRIBUTORS, THUS ENABLING THE LATTER TO AVOID A FIXED COST 

DISTRIBUTION CHANNELS 

EX-TRUCK A

SALES OPERATION WHERE THE EX-TRUCK SALESMAN CARRIES STOCKS IN HIS VAN OR SMALL TRUCJK, SATURATES A GIVEN TERRITORY REGULARLY BY SELLING HIS STOCKS ON “CASH” ASIS, AND DELIVERS THE STOCKS IMMEDIATELY UPON ORDER CATERS



THE NEEDS OF RETAILERS LIKE SARI-SARI STORE

FEEDER A

DISTRIBUTOR SALESMAS GOES AROUND BY HIMSELF TO TAKE ORDERS AND RELAYS THESE TO A DELIVERY TEAM WHO WILL BRING THE ORDERS TO THE RETAILERS THE

ADVANTAGE OF THE FEEDER MODEL OVER THE EX-TRUCK MODEL IS THAT THE SALESMAN IS ABLE TO SELL MORE THAN HIS TRUCK WOULD NORMALLY CONTAIN

DISTRIBUTION CHANNELS 

RETAILING ACTIVITY

INVOLVING THE SALE OF PRODUCTS OR SERVICES DIRECTLY TO FINAL CONSUMERS 

FRANCHISING A

FRANCHISE FEE IS PAID TO THE FRANCHISE OWNER IN EXCHANGE OF AN ESTABLISHED BRAND NAME, A PROVEN SYTM OF OPERATION, TRAINING AND OTHER INFRASTRUCTURE SUPPORT THE

RULE OF THUMB IS TO HAVE AT LEAST 100,000 POTENTIAL QUALIFIED CUSTOMER S FOR EVERY FRANCHISE

DISTRIBUTION CHANNELS 

DIRECT SELLING NETWORK

MARKETING IS ALSO KNOWN AS TH “PEOPLE’S FRANCHISE BECAUSE A SELLER SECURES THE RIGHT TO SELL A COMPANY’S PRODUCT, FOLLOS A PROVEN SYSTEM OF SELLING, AND HAS ACCESS TO TRAINING AND OTHER ADMINISTRATIVE SERVICES EVEN IF THERE IS NO FRANCHISE FEE PAID THE

DSAP TRIES TO PROTECT THE CONSUMER RIGHTS AND FIGHTS PYRAMIDING COMPANIES THAT USE NETWORK MARKETING AS THEIR FRONT

DISTRIBUTION CHANNELS 

INTERNET BUSINESS

TO BUSINESS MARKETING IS ALSO GIVING A DIFFERENT FACE TO THE SELLING PROCESS AS COMPANIES REALIZE THAT SUBSTANTIAL MONEY AND TIME CAN BE SAVED FROM THE PAPERLESS E-MARKETPLACE POPULARIZED BY ORACLE SOFTWARE. 30-50%

CAN BE SAVED IN ORDER CYCLE TIME

LESSER

INVENTORY AND INVENTORY COST, AND GREATER FLEXIBILITY TO RESPOND TO THE FAST CHANGING MARKETPLACE 

HOME DELIVERY INVOLVES

APPOINTING A CENTRALIZED CALL CENTER OPERATOR WHO IS TASKED TO TAKE OR SUGGEST ORDERS AS WELL AS SEND THESE ORDERS TO THE BRANCH NEAREST THE CUSTOEMR

DIAGNOSTIC DISTRIBUTION 

USED TO MEAN THE PROPER MATCHING OF DISTRIBUTION CHANNELS TO THE SELLING PROCESS

DIRECT MAIL

PROSPECTING

TELEMARKETING

QUALIFYING SALES

DIRECT SELLING

APPROACH

SALES PROBING SALES PRESENTATION HANDLING OBJECTIONS RETAILING

DEMONSTRATION

CLOSING DEALERS

AFTER SALES SERVIICE

STRATEGIC ALLIANCES 

TRADE CUSTOMERS AND SUPPLIERS ENTER INTO A STRATEGIC ALLIANCE TO ATTAIN SOME LONGTERM OBJECTIVES AND MUTUALLY IMPROVE THEIR POSITION IN THE INDUSTRY



THE GENERAL THRUST ID “PARTNERSHIP”WHATEVER IS THE PARTNER’S PROBLEM IS THE PROBLEM OF THE OTHER PARTY

SALESMAN AS ONLY LINK

TEAM SELLING AS AN INITIAL STEP TO STRATEGIC ALLIANCE

ALLIANCES AMONG COMPETITON 

COMPETITION CAN SOMETIMES COLLABORATE IF THE COLLABORATION WILL RESULT IN THE OVERALL INCREASE OF SATISFACTION OF EACH COMPETITOR’S CUSTOMERS AS WELL AS FOR COST-EFFICIENCY

EVALUATING DISTRIBUTION CHANNELS 

COST-EFFICIENCY IT

IS IMPORTANT TO ESTIMATE THE LONG TERM IMPCT OF HAVING ONE’S OWN SALES FORCE VERSUS APPOINTING A DISTRIBUTOR 

CONTROL IT

IS IMPORTANT THAT THE OBJECTIVES, PRIORITIES AND EXPECTATIONS OF THE FIRM BE COMMUNICATED AND AGREED UPON BEFORE PRINCIPALS ARRE CHOSEN AND DISTRIBUTORS ARE APPOINTED.

EVALUATING DISTRIBUTION CHANNELS 

CHANNEL MODIFICATION



THE MARKET PLACE I EVERCHANGING. THE FLEXIBILITY TO MODIFY DISTRIBUTION MAY BE NEEDED



OTHER CHANGES IN THE CONSUMER PURCHASING PATTERN SUCH AS WHEN NEW COMPETITION ARISES,AND WHEN INNOVATIVE DISTRIBUTION EMERGES, MUST ALSO BE CONSIDERED

BACKWARD DISTRIBUTION 

IF MARKETERS WILL NOT SHOW RESPONSIBILITY FOR THE ENVIRONMENT, THE GOVERNMENT WILL LIKELY BE FORCED TO ENACT LAWS AND MAKE THE RECOVRY OF A COMPANY’S PRODUCT TRASH COMPULSORY FOR EACH MANUFACTURER

GRAY MARKETING 

A TERM USED TO DESCRIBE UNAUTHORIZED IMPORTATION AND DISTRIBUTION OF PRODUCTS BEARING GENUINE BRANDS ACROSS THE MARKET



DIFFERENT FROM SELLING IMMITATED BRANDS