Degree of distribution

The distribution level , even distribution ratio or distribution rate ( English distribution rate ) is an economic indicator for the distribution of a product in the market. In particular, it indicates the extent to which a product is available to the end consumer, i.e. it relates to consumer goods on the last level of the sales channel .

The intensity of the distribution of a product is an important criterion for the presence of a company with this product in a market. Accordingly, a high degree of distribution is a central distribution policy goal; but subordinate to the corporate goals and marketing goals.

The degree of distribution can be determined as a numerical and weighted degree of distribution.

The composite, numerically weighted degree of distribution is a fixed component in the assessment of sales intermediaries / distribution channels .

Numerical distribution

${\displaystyle {\text{Numerischer Distributionsgrad in Prozent}}={\frac {{\text{Anzahl der Anbieter des jeweiligen Produktes X}}\cdot 100}{\text{Gesamtzahl der Anbieter}}}}$

The numeric distribution rate indicates at how many sales outlets a product / article is offered at time X in relation to the total number of providers on the market. The transactions are only recorded according to the number.

If a manufacturer supplies both retailers and wholesalers, a distinction must be made between direct and indirect degrees of distribution. The direct (indirect) numerical degree of distribution indicates what percentage of the potential sales intermediaries are supplied directly (indirectly) by the manufacturer.

Weighted distribution

The weighted distribution rate indicates, depending on the numerical distribution, how much turnover these providers generate in relation to total turnover.

${\displaystyle {\text{Gewichtete Distribution in Prozent}}={\frac {{\text{Umsatz der Anbieter mit Produkt X}}\cdot 100}{\text{Gesamtumsatz der Anbieter}}}}$

The weighted distribution allows conclusions to be drawn about the relative quality of the sales intermediaries.

Numerically weighted degree of distribution

The numerical and weighted distribution are usually combined to form the numerically weighted degree of distribution.

An exemplary value of 68/89 expresses that an item is sold in 68% of all stores on the market and that these stores generate 89% of total sales on the market.

Distribution factor

The distribution factor is calculated by dividing the weighted value by the numerical value.

• Example: ${\displaystyle {\frac {89}{68}}=1{,}31}$

The distribution factor can be interpreted as follows:

• Results above 1.0: The product is placed in high-turnover sales outlets; the higher the factor, the stronger the sales outlets are.
• Results at 1.0: weighted and unweighted distribution in the same ratio. The product is distributed in high-turnover and low-turnover sales outlets. The theoretically best possible distribution factor is 1.0. That would be the case if a product X were available in every point of sale such as B. Postage stamps at kiosks, bread in the grocery store etc. This also shows that the distribution factor cannot give a reliable statement about market shares. It must therefore never be used for planning purposes.
• Results below 1.0: The product is placed in sales outlets with lower sales.

Individual evidence

1. ↑ Degree of distribution - definition in the Gabler Wirtschaftslexikon
2. ^ Heribert Meffert: Marketing . Gabler, ISBN 978-3-409-69018-8 , page 563
3. ↑ cf. Geml / Lauer, 2008, p. 83

See also

• distribution

literature

• René Bürli, Paul Friebe, Clarisse Pifko: Distribution: Basics with numerous examples, repetition questions with solutions and glossary , Compendio Bildungsmedien; 1st edition, 2008, ISBN 3715593253
• Richard Geml and Hermann Lauer: Marketing and Sales Lexicon , 4th edition, Stuttgart 2008, ISBN 9783791027982
• Willy Schneider and Alexander Hennig: Lexicon of key figures for marketing and sales: The marketing cockpit from A - Z , Springer, Berlin; 2nd edition, 2008, ISBN 3540798617 , keywords: distribution quota , weighted and distribution quota , numerical

Web links

• 4.3.3 Degree of Distribution - Section in the course: Marketing for medium-sized companies at teialehrbuch