Effective Distribution and Customer Loyalty Strategies

Distribution Strategies and Objectives

Distribution is one of the decision variables. We choose k as points to get to our goals, which are Market Development Objectives (MDOs).

Distribution Objectives

• MDO Coverage Target: Percentage of points that are k recommended in that MDO.
• Control Program: We choose those k in the k channels that have some control. Let us cooperate. Franchises.
• Minimize the Cost of Distribution

Factors Determining the Choice of K Channel

• Consumer Features: Habits, etc.
• Product Features: The product determines the channel.
• Company Characteristics: Dimension, productive capacity.
• Characteristics of the Distribution: Standards, current legislation.
• Environmental Characteristics: K variables cause changes or trends.

Distribution Strategies

Length

That is, the number of intermediaries involved in the process of bringing the product from the factory to the final consumer.

Two main options: selling directly or through intermediaries.

Direct Sales

• It may be the most effective in terms of cost, especially for large volumes.
• Allows better control of the distribution task.
• Better position to meet customer needs.
• It achieves greater market information.

Sales Through Intermediaries

Width

Intensive

• Greater potential sales.
• Commodities, poorly differentiated and low-priced, are bought in the nearest outlet.
• "Market Share" is a direct result of the percentage "Participation of Distribution".

Selective / Exclusive

• Maintains a high fashion image of their products.
• Ensure that clients have at their disposal.
• Control over price.

Relational Marketing

It is based on commitment and trust.

Some activities to achieve commitment and trust are:

1. Develop a claims policy.
2. Offer an unconditional guarantee.
3. Create a club of customers or visitors.
4. Utilize technology properly to give customers specific information.

Loyalty Strategies

1. Relationship Strategy

Based on satisfaction and stable relationships with consumers, with the core value of customer-perceived value.

2. Guarantee Strategy

Based on assurances offered to buyers to acquire their points/services. Highlights mainly:

• Money-back guarantee if not satisfied.
• Guarantee repayment of the difference if paid more.
• Quality assurance through certification.
• Other guarantees.

3. Reward Strategy

This is to reward customer loyalty with economic awards, generally associated with the amount of purchases made.

How to Start a Loyalty Strategy

Phase One: Understanding the Customer

1. Study of our customers.
2. Analysis of the value of customer segments.
3. Diagnosis of the situation.

Phase Two: Adopt a Continuous Improvement Program

5. Election of the most appropriate loyalty strategy.
6. Action plans.