The third “P” of marketing is place – that is, where your product or service is distributed. As you prepare a marketing plan, consider which avenues will get your product to the client in a timely and cost-effective manner. By taking distribution methods into account, you can gain a more defined picture your customers, how they look for products, and whether they use the Internet or other outlets to access the product. This will help you narrow the potential distribution channels for your product. The next step is to do a cost analysis so you can decide which distribution channels to use.

Some of the issues related to distribution include:

• Distribution channels
• Market coverage
• Distribution centers
• Inventory management – This operation is critical when it comes to cash flow and efficiencies. Having what a client needs right away is important but having too much inventory sitting around can be expensive and will slow cash flow.   
• Order processing – This includes the frequency of taking and executing orders and how often you can serve a client.
• Product transportation

Deciding on the best distribution channel and placement for your product can drive the price most of the time, but remember to keep all the other issues in mind as you finalize this decision. 

Let Zions Bank’s Business Resource Center assist you with your business needs. Call us for a free appointment at 801-594-8245. We are open Monday through Friday from 9 a.m. to 5 p.m. Beth Holbrook can be reached at beth.holbrook@zionsbank.com.