Numeric distribution is based on the number of outlets that carry a product (that is, outlets that list at least one of the product's
stock-keeping units, or SKUs). It is defined as the percentage of stores that stock a given brand or SKU, within the universe of stores in the relevant market.
Distribution metrics quantify the availability of products sold through retailers, usually as a percentage of all potential outlets. Often, outlets are weighted by their share of category sales or “all commodity” sales. For marketers who sell through resellers, distribution metrics reveal a brand's percentage of market access. Balancing a firm's efforts in “push” (building and maintaining reseller and distribution support) and “pull” (generating customer demand) is an ongoing strategic concern for marketers.
[Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). ''Marketing Metrics: The Definitive Guide to Measuring Marketing Performance.'' Upper Saddle River, New Jersey: Pearson Education, Inc. . The ]Marketing Accountability Standards Board (MASB)
The Marketing Accountability Standards Board (MASB), authorized by the Marketing Accountability Foundation,MASB''Marketing Accountability Foundation (MAF)''. ited 8 December 2010/ref> is an independent, private sector, self-governing group of acad ...
endorses the definitions, purposes, and constructs of classes of measures that appear in ''Marketing Metrics'' as part of its ongoin
Common Language in Marketing Project
.
Purpose
Numeric distribution measures a firm's ability to convey a product to its customers in terms of total number of outlets carrying the brand. The main use of metric distribution is to understand how many physical locations stock a product or brand. This has implications for delivery systems and for the cost of servicing these outlets.
Construction
To calculate numeric distribution, marketers divide the number of stores that stock at least one SKU of a product or brand by the number of outlets in the relevant market:
:Numeric Distribution (%) =
:100 x Number of Outlets Carrying Brand (#) ÷ Total Number of Outlets (#)
See also
*
All commodity volume
All or ALL may refer to:
Language
* All, an indefinite pronoun in English
* All, one of the English determiners
* Allar language (ISO 639-3 code)
* Allative case (abbreviated ALL)
Music
* All (band), an American punk rock band
* ''All'' (All al ...
*
Product category volume
In Marketing, Product category volume (PCV) is the weighted measure of distribution based on store sales within the product category. PCV is a refinement of all commodity volume (ACV). It examines the share of the relevant product category sold ...
*
Category performance ratio Category performance ratio refers to the relative performance of a retailer in a given product category, compared with its performance in all product categories. Distribution metrics quantify the availability of products sold through retailers, usua ...
References
{{reflist
External links
MASB Official Website
Distribution (marketing)