Preview

Distribution Strategy

Powerful Essays
Open Document
Open Document
5364 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Distribution Strategy
Pasig Catholic College
Bachelor of Science in Business Administration
Major in Marketing Management

Research Paper & Report
DISTRIBUTION STRATEGY

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. 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

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Unit 29 Task 2 guidance

    • 372 Words
    • 2 Pages

    Distribution channels: availability of products (time, place, quantity); movement of goods from manufacturer to retailer to consumer; distribution channels for different…

    • 372 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    M2 Unit 29

    • 1506 Words
    • 4 Pages

    As mentioned in an earlier assignment, there are three main types of distribution channels. The first is the channel that goes from the producer, then to the wholesaler, then to the retailer or sells to the consumer. The second channel starts with the producer who sells straight to the retailer, who then sells to the consumer. The third channel goes directly from the producer to the consumer. Channels one and two are classed as indirect marketing channels, whereas channel three is a direct marketing channel as it goes straight from producer to consumer.…

    • 1506 Words
    • 4 Pages
    Good Essays
  • Good Essays

    MKT 421, Week 4, DQ 1:

    • 260 Words
    • 1 Page

    A channel of distribution is the means by which a product reaches the customer. It is "any series of firms (or individuals) that participate in the flow of products from producer to final user or consumer (Perreault 2009)." A distribution channel may be short, as in a company selling a product or service directly to the customer. In contrast, a distribution channel may be much longer, involving distributers and retailers. The channel of distribution is incorporated into the "place" aspect of the marketing mix.…

    • 260 Words
    • 1 Page
    Good Essays
  • Good Essays

    mktg 205 unit 3 project

    • 962 Words
    • 4 Pages

    This paper is intended to shine a light onto distribution channels, both direct and indirect, as well as, provide a better understanding of channel levels. It will also deal with the different channel organizations, including conventional, horizontal, vertical and multichannel marketing systems.…

    • 962 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    AMB335 Wk 6 Lecture 1

    • 1603 Words
    • 9 Pages

    We look at promotion more in Ch 8 & 9, wk 7 Evaluate the opportunities that the Internet makes available for varying these elements of the marketing mix. Distribution Channel Overview The element of the marketing mix that involves distributing products to customers in line with demand and minimising: Costs to company (Inventory, Transport, Storage) Costs to consumer (Time between purchase and fulfilment; Price of item) A distribution channel is a group of interdependent firms that work together to transfer products and information from the supplier to the consumer.…

    • 1603 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    During this SLP I reviewed the tutorial sections for Distribution Decisions, Retailing, Wholesaling, and Managing Product Movement This tutorial is a great resource for learning the basic fundamentals of marketing. The Distribution Decisions section showed me what the channels of distribution as well as the type of channel members. I then learned the importance of distribution channels and the benefits offered by channel members. I never knew any of this valuable information prior to doing this tutorial. I learned about the different distribution systems including direct, indirect, and multi-channel as well as the channel arrangements of independent…

    • 272 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Strategic Planning

    • 3771 Words
    • 16 Pages

    Our channels of distribution will deal with how we connect to our customer segment, how we raise awareness of our product to our customer segment, how we deliver our products to our customers and how we handle returns of our products.…

    • 3771 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    Many companies can run well enough using only wholesalers and dealers. They use three channel systems. When they use more than three this is indirect marketers. The Hershey chocolate bar requires more distribution channels. Distribution channels are needed to sell large quantities of Hershey’s chocolate bars.…

    • 804 Words
    • 4 Pages
    Good Essays
  • Better Essays

    A distribution channel is the sequence of firms that sell, buy, or hold products as those products move from manufacturers and producers to end buyers (Russ & Kirkpatrick, pg.297). Every channel must have at least two members or levels. These levels are the producer or seller, and the user or buyer. There are also two different kinds of members that are known as middlemen, these middlemen are known as retailers and wholesalers. The distribution channel is and will remain a problematic marketing subfunction for most firms because of the built-in conflicts between manufacturer and reseller (Bonoma, pg.49). Manufacturers must work through these different channels to attain diverse markets to reach their ultimate goal; provide their customers with what they want, where they want it, and when they want it.…

    • 1272 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Marketing Learning Log

    • 786 Words
    • 4 Pages

    Distribution (pg. 430): The decisions and activities that make products available to customers when and where they want to purchase them.…

    • 786 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    P2 Explain the process of distributing goods through different channels from the manufacturer to the customer…

    • 688 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The following table describes the factors that influence the choice of distribution channel by a business:…

    • 584 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    Nestle Distribution Channel

    • 2335 Words
    • 10 Pages

    According to Brassington and Pettitt, a channel structure is a route selected in order to move the product to the market through different intermediaries. This is the distribution channel structure which proves vital for the smooth movement of the product and making it available to the end consumer. Distribution Channel Structure forms the fourth element of the Marketing mix for any product. The ‘Place’ element, and therefore it becomes an important factor. There are various channels of distribution…

    • 2335 Words
    • 10 Pages
    Best Essays
  • Best Essays

    Distribution Channels

    • 2922 Words
    • 12 Pages

    CONTENTS .............................................................................................. 2 1. 2. INTRODUCTION .............................................................................. 3 DISTRIBUTION CHANNELS ........................................................... 4 2.1. KINDS OF MARKETING CHANNELS ........................................... 4 2.2. MAIN DISTRIBUTION CHANNELS ............................................... 5 3. DECIDING FOR THE RIGHT CHANNEL ......................................... 6 3.1. CUSTOMER CHARACTERISTICS ............................................... 6 3.2. NATURE OF PRODUCT ............................................................... 6 3.3. NATURE OF DEMAND/LOCATION .............................................. 7 3.4. COMPETITION ............................................................................. 7 3.5. LEGAL REGULATIONS/LOCAL BUSINESS PRACTICES ........... 8 4. 5. CHANNELS ARE IN CONSTANT EVOLUTION .............................. 9 SOME PROBLEMS MAY ARISE ................................................... 10 5.1. THE INTERNET CONFLICT ....................................................... 10 5.2. GREY MARKETING .................................................................... 10 5.3. LOSS OF BARGAINING POWER…

    • 2922 Words
    • 12 Pages
    Best Essays
  • Good Essays

    Ramly Burger

    • 4493 Words
    • 18 Pages

    In understanding marketing channels, it is important to know the reasons for the existence of channel structures. These structures typically called intermediaries because they stand between production on one side and consumption on the other. Intermediaries also known as an agent. Channels evolve through the need for specialized functions which can be performed more efficiently by agent. By breaking down a complex distribution task into smaller, simpler ones, and dividing them among agent who specialize in particular functions, there is likely to be greater efficiency in the overall distribution channel.…

    • 4493 Words
    • 18 Pages
    Good Essays

Related Topics