Part 3: The Marketing Plan – Sales & Distribution Plan

Sales and Distribution Plan
The main purpose in writing the marketing plan is to persuade people to buy your products or services. The Sales and Distribution Plan of the marketing plan will explain how you will try to persuade and convert potential customers.

Traditionally there are three parts included in the Sales and Distribution section of y our marketing plan, however, all three parts may not apply to your business.

1) Outline your distribution methods you’re going to use
How are you going to get your product or service to the customer? Will you distribute your product or service through a web site, email, retail stores, or sales representatives?

What distribution channel is going to be used?

In a direct distribution channel, your product or service will be shipped directly from the manufacturer to your consumer.

In a one stage distribution channel your product or service will go from the manufacturer to a retailer then to the consumer. A “middle man” is involved. A traditional distribution channel in today’s society goes from the manufacturer to wholesaler to retailer then to the consumer. You will need to outline all the different companies, people, or technologies that will used in the process to getting your product or service to your customer.

You will need to know what costs are associated with distribution, and their delivery terms.

How will the distribution methods you choose affect your production and delivery time frames? Basically what this is asking is how long will it take to get your product or service to your customer.

If you plan on starting a business which involves selling a product, you will need to include information about your inventory levels and packaging. For example:

  • How will your products be packaged for shipping?
  • Will your packaging meet all the requirements needed such as labeling?
  • Is your packaging appropriately coded and priced?
  • What will the minimum inventory you will need to maintain so you won’t lose sales due to late shipments and back orders?

2) Outline the transaction process between your customers and business.

  • What system will you use to process orders, shipping, and billing?
  • What payment methods will you accept?
  • What credit terms will be offered to customers? Will you offer discounts for early payments or penalties for late payments?
  • What is your return policy?
  • What kind of warranties will you offer your customer? Such as if the product is unopened will you take it back?
  • What kind of support will be offered before and after the sale? And will you charge anything?
  • Will you have a system for customer feedback so customer satisfaction can be tracked and addressed?

3) Outlining your sales strategy

  • What types of sales people will be involved?
  • Describe what you will expect out of these sales people, and how sales effectiveness will be monitored and measured.
  • Will you offer a sales training program? Is so, describe it in this section of your marketing plan.
  • Describe any incentives you will offer to salespeople for encouragement to do well. Such as converting the most customers, getting new accounts, etc.

This will end our Sales and Distribution plan of our marketing plan. Tomorrow we will discuss the Advertising and Promotion plan.

Part 1: The Marketing Plan Section of the Business Plan
Part 2: The Marketing Plan - Pricing Strategy
Part 3: The Marketing Plan - Sales and Distribution
Part 4: The Marketing Plan - Advertising and Promotion

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