OER-CRAFT

Distribution channel design for Art&Craft microenterprise

SFA_TF_3_4_EN  

 Title:
Distribution channel design for Art&Craft microenterprise
 Keywords
Distribution channel, customers, intermediary,target market
 Author:
UMA
 Languages:
English
 Objectives/goals:
Being aware of the necessity of design an adequate distribution channel
Knowing the advantages of using  channel Intermediaries
Understanding the relationships between producers and sellers


 Description:
Marketing channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption. The efficient organization and planning of distribution activities allows companies to optimize processes and reduce costs.


 Contents

The means to deliver the product the Art&Craft firms have to decide between four options:

Extensive distribution, this kind of distribution tries to cover the maximum number of possible sales points, without making any sort of selection or previous filtration.

Intensive distribution In the case of intensive distribution, the distribution of the product is sought at points of sale related to the same commercial branch, handicraft companies only.

Selective distribution, you can make selection based on geographical, demographic or practical criteria (for example, with easy access and close to your production point). Recommended for products that seek that point of differentiation from the competition.

Exclusive distribution Very exclusive and limited points of sale are chosen, in order to enhance the prestige of your brand. Exclusive distribution is a great option to have greater control of your products and have greater profit margin.

We are going to give you the main functions and activities in which distribution can help our business.

- Better customer service, the sales department can manage products and services based on customer needs. In addition, response times will be reduced and will be of higher quality. A good organization allows to lighten any process.

- Design and plan more adequate and optimal transport routes, as well as the way and means to be used to distribute the products to customers.

- Inventory management. The storage of materials will be based on the company's sales systems, the products most demanded by customers, or the most perishable. There are many elements that must be considered: type of product, size, space and place of storage, etc. In short, keep an exhaustive control of the stock.

- Order processing. The good management and planning of the stock, allows to process the orders of very fast way, satisfying the demand of the clients of effective form.

- Data management, knowing better our own product and storage system. We can obtain a large amount of information, regarding orders, detection of errors and incidents, etc.



 Indicators


 Bibliography

https://www.oecd.org/industry/smes/31919223.pdf
https://www.icex.es/icex/es/navegacion-principal/implantacion-e-inversion-exterior/index.html
https://es.wikipedia.org/wiki/Exportaci%C3%B3n
https://www.youtube.com/watch?v=o7o0__2ULrg
https://www.researchgate.net/publication/225084026_Marketing_Management


 Related material:
2.2.2.4_artcademy_training_fiche_introduction_to_marketing_intermediate_uma_en.docx