distribution level

The distribution level (also called distribution quota or distribution rate) is a key figure in business economics and indicates the spread of a product in the market.

The distribution level is an indicator of the intensity of distribution and provides information on quantitative market presence. A high degree of distribution is a central goal in sales policy and can be calculated in various ways. Essentially, a distinction can be made between numerical and weighted distribution levels. The numerical distribution level indicates the number of sales outlets offering a product at time x in relation to the total number of suppliers on the market. The numerical distribution level is relatively easy to calculate but applies an undifferentiated evaluation/weighting of the sales outlets. In contrast, the weighted distribution level calculates the turnover generated by the suppliers depending on their numerical distribution level in relation to the total turnover. The weighted distribution level thus allows conclusions about the relative quality of the sales partners.

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