Distribution channels

How do you sell to your end-users? Do you use a direct sales team? Resellers? A catalog or website? Distribution channels are the pathways that companies use to sell their products to end-users. B2B 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. You may use multiple teams that specialize in different products or customer segments.

. 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): A VAR works with end-users to provide custom solutions that may include multiple products and services from different manufacturers.

. Consultant: A consultant develops relationships with companies and provides either specific or very broad services; they may recommend a manufacturer's product or simply purchase it to deliver a solution for the customer.

. Dealer: A company or person who buys inventory from either a manufacturer or distributor, then re-sells to an end-user.

. Retail: Retailers sell directly to end-users via a physical store, website or catalog.

. Sales agent/manufacturer's rep: You can outsource your sales function to a company that sells different manufacturers' products to a group of similar customers in a specific territory.

Distribution is one of the classic "4 Ps" of marketing (product, promotion, price, placement a.k.a. distribution). It's a key element in your entire marketing strategy - it helps you expand your reach and grow revenue.

Here are three distribution examples:

To create a good distribution program, focus on the needs of your end-users.

If they need personalized service, you can utilize a local dealer network or reseller program to provide that service.

If your users prefer to buy online, you can create an e-commerce website and fulfillment system and sell direct; you can also sell to another online retailer or a distributor to offer your product on their own sites.

You can build your own specialized sales team to prospect and close deals directly with customers. Wholesalers, resellers, retailers, consultants and agents already have resources and relationships to quickly bring your product to market. If you sell through these groups instead of (or in addition to) selling direct, treat the entire channel as a group of customers - and they are, since they're buying your product and re-selling it. Understand their needs and deliver strong marketing programs; you'll maximize everyone's revenue in the process.