Significant things I have learned from the readings on Distribution
This paper summarized the most significant thing I learned from the readings on distribution (text and articles). The most significant thing that I’ve learned is that the coverage of distribution can be viewed ranging from intensive to selective to exclusive distribution. Other learning is also covered in this paper.
Intensive distribution is where manufacturer gain exposure through as many retailers and wholesalers as possible. Based on the product characteristics and the expectations of the buyer need most convenience goods required intensive distribution (Donnelly & Peter, 2009).
Selective distribution is believed to be the ones that are best available in a geographic area. This maybe based on the reputation of the intermediary, sales and the service organization available. Clothing, home furnishings and appliances are selectively distributed. The intermediary reputation for better clothing and home furnishings would be an important consideration, while appliances intermediary service organization could be a key factor (Donnelly & Peter, 2009).
Exclusive distribution is where distribution is limited by the manufacturers. The product characteristics are a figure factor. This is where the product requires investment in large inventories and this arrangement is usually selected. Examples of this distribution arrangement are retail paint store (Donnelly & Peter, 2009).
I have learned about degree of control desired, total distribution cost, and the channel of flexibility. According to Donnelly & Peter (2009) sellers must make decisions about the degree of control desired over the marketing of the firms’ products when selecti...
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I have also learned about specializing in one phase of distribution. Through research I’ve found that you should be the best in one stage of the buying process if you participate in an open channel, and your company’s competitive advantage comes from products of process competence (Cespedes & Nunes, 2003). Payment enablers are included by companies choosing to concentrate in this way. Payment enablers are MasterCard, American Express and Visa (Cespedes & Nunes, 2003).
To sum up the reading on distribution, I was amazed about the different channels and phases of distribution a company can go through.
Works Cited
Cespedes, F., & Nunes, P. (2003). The Customer Has Escaped. Harvard Business Review. Volume 81 Issue 11, p 96-105.
Donnelly, J., & Peter, J. (2009). Marketing Management: Knowledge and Skills. McGraw-Hill/Irvin. 9th edition, p 147.
• Distributor agreements: Finding and securing agreements with exceptional manufacturers and distributors will be an absolute need for success. A unique product will support the brand message. Products, Services, and
The goal of this distribution strategy is to mark up our prices minimally as we have to make some profit. However, due to the low cost of production and relatively low cost of expenses, our distribution strategy relies on moving large quantities of inventory consistently. The more volume we move, the more profit we will make (Refer to Appendix
...urselfers. The distribution strategy identifies the major channels through which the product will delivered and pushed through to the consumers.
Access to distribution channels: Accessing major distribution channels might be challenging and it stands to be a significant barrier. Apple products are sold by third party retailers, Apple brick and mortar stores and on Apple’s website. It might not be too easy for a new entrant to convince a third-party retailer to prioritize its product over major products like Apple’s.
Place, intended as the firm 's distribution, and pricing are also important element of the marketing mix used by
New York, NY: Bantam Books, 2007. Print. The. Flatley, Marie, Kathryn Rentz, and Paula Lentz. Business Communication.
The Frito-Lay product distribution location strategy is to sell in grocery stores, convenience stores and gas stations. Frito-Lay’s distribution strategy is from manufacturer to retailer and from retailer to customer, thus the retailers offer the company a location to sell their products and allows for intensive distribution ("P7distributioncasestudy - Fritolay"). Frito-Lay products are sold in the snacks area. Frito-Lay aims local customers in the countries in which they distribute their packed
Distribution- work on alternatives of outsourcing the distribution network or transportation routes. Should focus on outsource this non-core business activities if it is non-profitable. It is costly by not understanding the multi distribution network in standard line delivery (Multiple drop off points through retail channel sales)
Consumers can purchase the goods through diverse channels and this will raise consciousness in the customers’ mind and make the loyalty. The higher the channel, the lower the price, it is going to occur all kinds of customers. Thus, enterprises have to consider their distribution channel architecture. They need to decide that channel must be applied an identical to their brand
The future strategy is to serve a special niche in the US market by selling higher priced doors through regional distributors, who then sell the doors to the customers. This new strategy focuses on a higher quality product that is sold with a higher price. It also emphasizes on the service factor of the specialized retailers, who target a different type of customer. Instead of a one-stage distribution channel this would be an example of a two-stage distribution channel strategy, which implies a different pricing strategy. The selective distribution of the new strategy would possibly give their product a new, higher quality image and get the customer more service.
Distribution channels for when, how and where an organisation’s products are distributed to their consumers. [REFERENCE] The organisation needs to carefully place where they want to distribute their products. For instance, they may have an expensive handbag, so they it would make sense to place it in upmarket department stores and boutiques so that the product is seen as being more exclusive and it also makes it more difficult to obtain if they aren’t available everywhere. [REF] However, if the product is seen as too difficult to obtain, it could affect the overall opinion of the product, which could result in less sales as consumers in developing countries would not consider it a necessary purchase so may choose to go without it.
Global distribution channels vary in general because everyone is trying to discover a way to make money without getting the flow of current distribution channels. Each channel is a very important chapter in the process of the global channel in order for the world to obtain some type of harmony within the distributing between the channels.
A distribution channel involves the distributors, wholesalers, retailers, salesmen and all other intermediaries. Distribution channels on the basis of number of intermediaries is of following types:-
... P.H. (1988). Marketing Management: Analysis, Planning, Implementation and Control. (6th ed.). Prentice-Hall: Englewood Cliffs.
These incorporate merchants, makers, stockists, wholesalers, dissemination, and as of now, World Wide Web, and so on. Decision of a fitting channel relies on upon the items or administrations to be showcased, the volume included the land areas to be secured and the long haul business approach of the firm in doing advertising capacities and practicing controls. Decision of a channel is critical as it can specifically impact the level of client administration.