| work | | | | service the product. Dealers are actually customers, |
| Dealers are actually customers, too, and it is the | | | | too, and it is the company’s responsibility to |
| company’s responsibility to provide them with a | | | | provide them with a strong program to train and |
| strong program to train and support them with good | | | | support them with good marketing campaigns, |
| marketing campaigns, resources and other useful | | | | resources and other useful materials. |
| materials. Distribution channels help a company to | | | | Sell through a VAR (Value-Added Reseller) — |
| effectively generate increased revenue if used | | | | A company can sell a product to another business |
| correctly. These are pathways that can be used to | | | | that bundles it with services or other products |
| sell company products to end consumers. Distribution | | | | and then re-sells them to the market. The bundling |
| channels help a company to effectively generate | | | | entity is called a VAR because it adds value to the |
| increased revenue if used correctly. These are | | | | company product. These businesses may collaborate |
| pathways that can be used to sell company products | | | | with an end consumer in other to point out the right |
| to end consumers. Sales can be done through a single | | | | products and configurations. Once it has been |
| channel and even multiple ones and include a direct | | | | determined, a system will be implemented which |
| sales team, wholesaler/distributor, value-added reseller | | | | includes the product itself. |
| (VAR), consultant, dealer, retailer, and sales agent | | | | In order to guarantee a good distribution network, it is |
| manufacturer representative. Such a complex | | | | important to provide effective programs that focus on |
| interdependence usually requires the use of a partner | | | | the needs of customers. If they need personalized |
| portal to increase communication and collaboration | | | | services, then the company can employ the help of a |
| between channel members. | | | | local dealer network or reseller program to provide |
| Distribution is an essential part of a company’s | | | | such a need. If they prefer shopping online, then an |
| entire marketing strategy because it helps expand its | | | | e-commerce website can be created which features |
| reach and increase the growth of revenue. It is one of | | | | a fulfillment system and directly sells products. Another |
| the classic 4 P’s of marketing which are | | | | approach to this is by selling the product to another |
| product, promotion, price and placement which is also | | | | online retailer or distributor to offer the product on their |
| known as distribution. There are three examples of this | | | | websites. A good way to address customer needs is |
| strategy, and they are: direct to end users; sell through | | | | by building a specialized sales team that prospect and |
| a dealer network and; sell through a VAR | | | | directly closes deals with end users. |
| (value-added reseller). | | | | It is important to treat the whole channel as a group of |
| Direct to End Users — For this type of | | | | customers because they buy and re-sell a |
| distribution, a company would usually have a sales | | | | company’s product. Wholesalers, resellers, |
| team that directly sells to companies. A second | | | | retailers, consultants and agents possess their own |
| product line is made available for small businesses and | | | | resources and business relationships that can truly give |
| the company directly sells this line to end-users or | | | | a company an advantage in the market. Utilizing them |
| consumers through a website and marketing | | | | requires an understanding of their needs then delivering |
| campaigns instead of utilizing a sales team. | | | | strong programs to them in order for the channel to |
| Sell through a Dealer Network — For this type, a | | | | maximize its fullest potential. This can be a complicated |
| company will have two distribution channels to cater to | | | | process. However, with the help of the right kind of |
| two markets. A product is sold through a geographical | | | | applications such as a partner portal, then |
| network of dealers who sell products in their | | | | communication and collaboration can be done easily |
| respective locations or areas. The dealers may opt to | | | | for the benefit of the whole network. |