Distribution Strategy

2 February 2017

For Partial Completion of the Course Marketing 25: Marketing Management Submitted by: Claudio, Patrick Angelo De Belen, Pamela Dosalla, Christian Imperial, Graceshelle Submitted to: Mr. Abelito Quiwa, MBA Objectives 1.

To understand the development and management of the channels in distribution and the process of goods distribution in complex, competitive, and specialized economies. 2.To distinguish the different marketing intermediaries and the functions they perform in the distribution process 3. To know how to select the proper channels of distribution depending on the circumstances of the market. 4. To discuss in-depth details on wholesaling, store and nonstore retailing The Need for Marketing Intermediaries Most producers use intermediaries to bring their products to market. They try to develop a distribution channel (marketing channel) to do this.

Distribution Strategy Essay Example

A distribution channel is a set of interdependent organizations that help make a product available for use or consumption by the consumer or business user.Channel intermediaries are firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user. A company’s channel decisions directly affect every other marketing decision. Place decisions, for example, affect pricing. Marketers that distribute products through mass merchandisers such as Wal-Mart will have different pricing objectives and strategies than will those that sell to specialty stores. Distribution decisions can sometimes give a product a distinct position in the market.The choice of retailers and other intermediaries is strongly tied to the product itself.

Manufacturers select mass merchandisers to sell middle price ranged products while they distribute top-of-the-line products through high-end department and specialty stores. The firm’s sales force and communications decisions depend on how much persuasion, training, motivation, and support its channel partners need. Whether a company develops or acquires certain new products may depend on how well those products fit the capabilities of its channel members. Some companies pay too little attention to their distribution channels.

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