Some companies emphasize product distribution rate and market presence, believing that pursuing 100% distribution rate is the guarantee of retail success. Other companies focus only on key outlets and oppose high distribution rates, thinking that doing so is uneconomical and the operating costs are too high. How should we correctly view distribution rate? And how should we handle several relationships in distribution operations? Properly handle the relationship between "outlet quantity" and "outlet quality" Although distribution rate is very important, attention should also be paid to the relationship between "outlet quantity" and "outlet quality". If one blindly and excessively pursues distribution rate, it will increase sales costs. This not only wastes resources but also affects the concentrated investment in A and B class key outlets. Therefore, what kind of product goes into what kind of store should be based on the product's grade and nature to choose suitable outlets for distribution, without forcing "blooming everywhere". The sell-through rate is as important as the distribution rate. Ideally, some companies have high distribution rates, but the sales performance of the distribution outlets is not ideal, and the sell-through rate of these outlets is not high. In addition to taking distribution rate as an important assessment indicator, the sell-through rate of each outlet should also be an important assessment indicator; the outlet sell-through rate is as important as the distribution rate. To improve sell-through rate, some companies adopt a strategy of "grasping the big and letting go of the small" during distribution, that is, focusing on outlets with large sales volume and investing main resources there, while placing smaller outlets in a secondary position. This way, both distribution rate and sell-through rate increase simultaneously. In the development of distribution outlets, it is necessary to correctly handle the relationship between outlet quantity and outlet quality. Not only should we value the quantity of outlets, but also the quality of outlets. We should establish the concept that "the sales performance and manufacturer-dealer cooperation relationship of outlets are not ideal, causing resource waste". Distribution rate is an important indicator in network development, but it is not the only indicator. A distribution rate that is too low is not conducive to sales, but it is not that the higher the better. Some companies have high distribution rates, but the sales performance and manufacturer-dealer cooperation relationship of outlets are not ideal, resulting in resource waste. Properly handle the relationship between "early-stage distribution" and "later-stage management" Many companies only emphasize "early-stage distribution" and do not pay attention to the "later-stage management" of distribution, thinking that once the product is distributed, everything is fine. In fact, distribution does not mean the product is sold; only outlets that can promptly sell the product to consumers and form a virtuous cycle are effective distribution outlets. Therefore, companies should not only value early-stage distribution but also pay more attention to later-stage management of distribution. When handling the relationship between early-stage distribution and later-stage management, we should establish two viewpoints: 1. Distribution rate is not equal to shelf presence rate Although the product is delivered to the outlet, sometimes the product cannot be found on the shelf. Retailers may store the product in the warehouse or in a place under the shelf where it is not visible. This only achieves warehouse transfer and does not achieve the desired effect. Therefore, while emphasizing the quantity of distribution, we should also do a good job in distribution tracking services and try to seize the best display position on the shelf. 2. Daily shelf management is as important as distribution Shelf management is as important as distribution and requires constant attention. During regular scheduled distribution and visits, salespeople should strengthen product shelf management. In some well-known foreign companies, there are professional merchandisers who work hard at various outlets every day to help store staff with shelf management, which shows the importance of shelf management for sales. The common problem of current salespeople is that they put the product in the store, write an IOU, and leave. If the store owner puts the product in the warehouse or in a corner in whole boxes, consumers cannot see the product at all, and sales cannot be achieved. In specific operations, we should always strive for the best display position, keep the product clean and defect-free, and let the product always appear attractive to consumers; try to place the product together with similar best-selling products to expand the display area, and make the product in the best visual position, or use a unified display rack from the manufacturer; when there are many varieties, a special counter can be set up for sales. Properly handle the relationship between "distribution quantity" and "actual sales volume" When the product leaves the enterprise, before it is sold, it is called "distribution"; after it is sold, it is called "actual sales". Although there is a clear correspondence between "distribution quantity" and "actual sales volume", the two are not always synchronized. Generally, within a certain period, "distribution" comes first, and "actual sales" comes later. Is a larger "distribution quantity" always better? How should it be managed? This depends on the marginal effect of "distribution quantity". In the initial stage of product launch, increasing "distribution quantity" can promote the growth of "actual sales volume". The growth part of "distribution quantity" is synchronized with the growth part of "actual sales volume". At this time, the marginal effect of "distribution quantity" is increasing. When the market gradually saturates, the impact of the increased part of "distribution quantity" on "actual sales volume" becomes smaller and smaller. At this time, the marginal effect of "distribution quantity" is diminishing. The change in the marginal effect of "distribution quantity" indicates that increasing "distribution quantity" does not necessarily increase "actual sales volume". Therefore, it is necessary to scientifically arrange the quantity of distribution based on the change in the marginal effect of "distribution quantity". It is regrettable if actual sales are affected due to lagging or insufficient distribution, but the problem is not difficult to solve. The important thing is to overcome the negative effect of "distribution quantity". In fact, if "distribution quantity" is paused or reduced within a specific period, "actual sales volume" will not decrease because customers still have sufficient inventory. Properly handle the relationship between "distribution and advertising and promotion" Advertising and distribution are two issues that enterprises must face in terminal work. It is said that distribution should be coordinated with advertising, but many enterprises hesitate in actual operation and do not know how to arrange the order of distribution and advertising investment. If distribution comes first and advertising later, salespeople will report that distribution cannot proceed; if advertising comes first and distribution later, it may happen that the market has not fully started while the advertising budget is already used up. However, it is not easy to distinguish which is more important and which comes first, and to provide support for terminal work accordingly. So, should advertising come first or distribution first? One situation is distribution first, advertising later. The advantages of this are two: First, the risk of advertising investment is relatively small. If distribution is carried out first, even if distribution does not go smoothly, it will not cause advertising waste. Second, it relatively reduces advertising investment. After distribution is in place, launch an advertising offensive, spending money on the blade, so that consumers who see the advertisement can conveniently buy the advertised product, which can promote immediate purchase, relatively reduce advertising investment, or reduce the loss of advertising investment, saving advertising costs. The disadvantages of this are three: First, it is difficult to develop strong distributors. Before the manufacturer invests in advertising or the advertising investment is truly in place, strong distributors generally are not willing to do market development. Therefore, it is difficult to gain the support of strong distributors. Second, distribution resistance is high. Without advertising support, distribution resistance is high, distribution time is prolonged, and it is difficult to carry out large-scale carpet distribution, making it difficult to promote the product on a large scale. At the same time, fatigue may appear, wearing down the confidence of marketing personnel and distributors. Moreover, if distribution time is too long, distribution costs are also high. Third, it is easy to make the market "half-cooked". After the distribution rate goes up, if advertising support cannot keep up, it will lead to product sluggish sales, making the newly shelved products become weak products, and ultimately causing retail terminals to return goods due to sluggish sales. Moreover, once retail terminals have the impression that the product "does not sell well", they will lose confidence and refuse to sell the product for a long time, forming a "half-cooked" market. Another situation is advertising first, distribution later. The advantages of this are three: First, advertising gives strong support to distribution and reduces distribution resistance. Advertising combined with terminal distribution makes distributors and retail terminals feel that this product has advertising support, which can reduce the resistance of market introduction. Second, it is conducive to centralized, rapid, and large-scale distribution. With advertising support, distribution work goes smoothly, greatly shortening distribution time. Concentrated distribution time is conducive to large-scale promotion of the product, while saving distribution costs. Third, it is conducive to achieving cash-on-delivery during distribution. The disadvantages of this are two: First, if distribution is seriously lagging, it will cause advertising waste. If advertising goes first, but distribution is hindered for some unexpected reason, or the distribution surface corresponding to the advertising is narrow, and the product's distribution rate at sales terminals is not high, then even if the advertising is done well, it will lead to waste of advertising investment. Therefore, launching an advertising offensive before distribution has a relatively large advertising investment risk. Second, if distribution is seriously lagging, consumers who see the advertisement want to buy but cannot buy, and their purchase impulse cannot be promptly and quickly transformed into actual purchase, then consumer enthusiasm will fade, leading to advertising waste. In marketing practice, there is also an innovation, which is to adopt a strategy of alternating advertising and distribution, which has better results than the previous two methods. Advertising and distribution, no matter which comes first, have advantages and disadvantages. So, is there a way to take the strengths of both and make advertising and distribution more closely coordinated? Is there a more reasonable, more economical, and lower-risk solution? Yes, that is to alternate advertising and distribution. This approach should pay attention to the following points: 1. Advertising for trial distribution Trial distribution is the best distribution survey. Through trial distribution, we can understand the attitudes of distributors and retailers towards the product, the enterprise's distribution policy, and their opinions and suggestions on advertising support and advertising investment for this product. Through this survey, we can be targeted, and thus formulate advertising investment strategies, media strategies, and distribution policies, revise distribution strategies and advertising investment plans, and greatly improve the success rate of advertising and distribution. Use a small amount of advertising to support the first round of distribution. Invest a small amount of advertising to support the first round of distribution, either "advertising first, distribution closely following" or "advertising and distribution simultaneously", but only appropriately invest a small amount of advertising to support the first round of distribution. The purpose is to make distributors and retailers feel that this product has advertising support, thereby increasing their interest and confidence in distributing this product and reducing distribution resistance. The first round of advertising is for distributors and retailers to see. The purpose of the first round of advertising is not to start consumers, because advertising has a gradual process, and moreover, only a small amount of advertising is invested, which is difficult to start a large number of consumers. 2. Large-scale advertising offensive supports the second round of distribution After the first round of distribution, when the distribution reaches a certain level, a second round of large-scale advertising offensive can be launched. The second round of advertising should be larger in volume, longer in duration, and stronger in intensity than the first round, to form a high-density, large-scale advertising offensive. The purpose of the second round of advertising is twofold: first, to continue to start distributors and retailers, further mobilize their interest and confidence in distributing this product, and thus continue to distribute in places that were not fully distributed or were difficult to distribute in the first round; second, to fully start consumer purchases, combine advertising with terminal promotions, stimulate consumer purchasing enthusiasm, and drive terminal consumption. 3. Terminal promotions closely follow each round of distribution Distribution is only a means; promoting terminal sales is the goal. If after the product is distributed in place, terminal promotions do not follow up in time, the newly shelved products may become "weak products", causing the early distribution results to be wasted. Moreover, if the distributed terminal outlets cannot generate actual sales as soon as possible, these outlets will be worse than those that have not been distributed. The most important thing for product market entry is to drive terminal consumption. Without consumption, there is no terminal sales. Terminal sales stagnation will inevitably affect distributors and even the enterprise. Therefore, while paying attention to product distribution, we should fully value the work of driving terminal consumption. After the product is distributed in place, terminal promotions must follow up in time, combining advertising pull with promotion push, so as to drive terminal consumption, generate sales as soon as possible, start the distributed outlets to ship goods early, and form good terminal sales from the beginning. Advertising stimulates consumers' purchase desire and generates purchase impulse, while terminal promotions transform purchase impulse into immediate and local actual purchase in a timely and rapid manner. The popularity of the product further arouses terminal interest, stimulates distributors and retailers' willingness to stock, changing the enterprise's passive distribution into merchants' active demand, thus forming a virtuous cycle. Selling products to distributors and retailers by driving terminal consumption is the most brilliant distribution strategy. It is necessary to correctly handle the dialectical relationship among distribution, advertising, and terminal promotion. Advertising and distribution cannot be separated, and terminal promotion and distribution cannot be separated either. In actual operation, "alternating advertising and distribution, with promotions following up to start the terminal", thus forming a virtuous cycle, can be said to be a better strategy.