Distribution channels are one of the classic “4 Ps” of marketing (product, promotion, price, placement—a.k.a. distribution).  Distribution helps you expand your reach to gain market share and increase company value.

Distribution decisions should complement a company’s brand strategy and tie directly into pricing strategy.  The sales process, or the steps buyers take before making their final purchase decision, are built into each distribution channel, and are fed by promotions or marketing campaigns to drive revenue through the channel.

Distribution Channel Value

Companies can sell through a single channel or through multiple channels that may include:

  • Direct/sales team: One or more sales teams that you employ directly
  • Direct/Internet: Selling through your own e-commerce website
  • Direct/catalog: Selling through your own catalog
  • Wholesaler/distributor: A company that buys products in bulk from many manufacturers and then re-sells smaller volumes to resellers or retailers
  • Value-added reseller (VAR)

Expanding existing distribution channels or creating new ones can help businesses significantly grow their market share.  It’s possible to increase your revenue and market value an additional 5%, 10%, or even 20%, by simply improving an underperforming channel or launching a new one. Growth Panel enables you to perform these high-value strategic activities, adding substantial measurable value to your top line and enterprise value.    

Distribution Channel Tools in Growth Specialist

  • Identify Potential Channels:  Evaluate how your customers prefer to buy and how to reach more of them through different channels.
  • Establish a New Channel:  Create the process for setting up a new channel, and define the steps and roles, including pricing, for each partner.
  • Create a Channel Marketing Plan:  Design marketing campaigns for you and your channel partners to drive revenue through the channel.
  • Improve Channel Performance:  Track channel partner performance, and make recommendations for improvement.