TheMarketing Mix: Distribution Channels (Place)
MARKETINGMIX: DISTRIBUTION CHANNELS
Distributionchannels refer to a chain of steps used by a manufacturer todistribute goods from manufacturing place via intermediaries to thefinal user of the good: consumer. Managers’ of every organisationformulate strategies to be followed in the distribution process(Rogers,2001).This sector requires a lot of keenness since wrong choice of channelwill end up draining away returns. In each and every stage, managercalculate the buying price and the selling price and makes sure theyget a share of profit. Depending on the size of your organisation,nature of the product, distance to be covered and reliability factor,manager choose the channel which sufficiently and efficaciously fitstheir organisation.
DISTRIBUTION,LOCATION AND TIMING
Takingan example of an international organisation which deals with digitalelectronics goods and services:
Availabilityof customer services
Wewill be readily available for our customers’ services on week daysfrom 8am to 5pm office hours at every agent office in all oursubsidiaries in respective countries. Wealso formulate our email and social media’s where we willinteractand respond to customers’ queries.
Locationand the reason of the location of the organization
Majortowns and cities. We target strategic places and where people haveadvanced in technology. Electronics and digitals require electricityfor their functionality, and for the reason, we target enormouscities and town which have developed in terms of technology and dueto good means of transport system.
Purchasinghours for customers
Customersare free to buy during office hours but they can purchase onlinethrough E- Commerce. This is time effective as no movement isrequired and a lot of information is usually posted in the internetfor marketability of the organization.
Thiswill happen via email or social Medias since most customers havesmart phones and tablets or are able to assess computer back at theirrespective places. After ordering, necessary arrangements will bemade on how the service ordered can reach the specific customer.
Theservices will also constitute even tangible elements for example,intangibles services will to offer information about the use andinstallation of the digital electronics whereas we also do offer thephysical electronics as well. Necessary arrangements will be arrangedas to how the commodity will be dispatched to the consumer. That is,through direct dispatch or via intermediaries.
VARIATIONS(IN DISTRIBUTION) BY TARGET MARKET
Therethree methods of distribution channel used in distributing goods.
Intensivedistribution:for example, foodstuffs are spread in many outlets and in strategicplaces as there are fast moving commodities.This is to make themreadily available to the consumer due to their perishable nature.Tentatively, electronics are made closer to the customers as they aredelicate to carry from one point to the other. Also it will be costeffective as no further expenses will be required to cater fortransport.
Inthis method, less intermediaries are required to effect thedistribution process. This is due to scientific application ofappliances which call for experts and specialized personnel in orderto fix it accordingly. Due to this reason and in real life situation,specialist and experts are less likewise to intermediaries.Electronics and digital devices also require a specialist andtherefore minimal intermediaries (Burton,Kotler & Keller, 2008).
Thisis a situation where the producer exclusively select someintermediaries to resell the product on his behave. For example, ourorganization which deals with electronics can select few of theintermediaries who we know they have apt knowledge about the market.
Distributionaccording to customer segmentation
Customersegmentation is characterized with the feature of each customer’slocation, according to factor of market, distance or other variablesunder the study (Viardot,2004).For instances, channel mix can occur in the distribution of good. Asnoted by Burton,Kotler & Keller (2008),the electronics and digital devices organization can use anotherorganization channels to initiate distribution of intended commodity.The adopted organization takes the commodity and it can furtherimprove its quality through branding or through repackaging. This isdue to the knowledge the organization have about the market segmentin respect to consumer tastes and preferences (Viardot,2004).
Segmentationof customer may result to the big companies delegating someauthorities to some specific person of a certain market segment to bethe agent or retailer. This is due to the fact that, they know thebehavior of the targeted customers due to interaction or cultureequalities (Rogers,2001).
Somecultures may have negative or positive preferences of certaincommodities, and due to distribution of the commodities by a memberof their culture may result to a perfect preference.
Thisis the main and pertinent aim of every organization. Distributionstrategies of goods and services can make an organization to becompetitive. The closer the goods and services are made closer to theconsumer (for examples, our organization which opens retails)acquires advantages to be able to compete with other companies. Also,due to perfect channels chosen, which have less intermediaries’hence fast deliveries, give it competitive advantage (Burton,Kotler & Keller, 2008).
Burton,S., Kotler, P., & Keller, K. L. (2008). Marketingmanagement.French’s Forest, N.S.W: Pearson Education Australia.
Rogers,S. C. (2001). Marketingstrategies, tactics, and techniques: A handbook for practitioners.Westport, Conn: Quorum Books.
Viardot,E. (2004). SuccessfulMarketing Strategies for High-Tech Firms.Norwood: Artech House.