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.…
Each channel member performs some marketing functions. Producers (manufacturer or originator of product/service) Intermediaries (firms that match buyers and sellers and mediate transactions among them - retailers, resellers, logistics firms) Buyers (consumers or users of the product or service). Example: Track My Macca’s Showcasing the supply chain via an app…
Pelton, L. E., Strutton, D. & Lumpkin, J. R. 2002, Marketing channels: a relationship management approach. McGraw-Hill Irwin: Boston, p. 387.…
A marketing channel is simply a path that flows from sellers to end-users (customers). Traditional brink and mortar marketing channels can include intermediaries such as manufacturers’ agents, wholesalers, and retailers. Members of a traditional distribution channel can be responsible for activities such as transportation, promoting, sorting, order processing, inventory management, insurance, and financing (Finch, 2012). All of these members of the distribution chain must be compensated for their services which not only diminish profits to producers, but it also can translate into higher cost for customers. Some of the benefits of this process are is that these middlemen or intermediaries are responsible for adding value to the goods being sold. This process can only be justified if it continues to add value that surpasses the value that the producer operating independently can.…
Boost Juice Bar is a young Australian retail company which set up in 2000 by Janine Allis, it is the largest juice and smoothie bar at the Southern Hemisphere and is in more countries than other juice bar in the world. Boost Juice Bar has grown rapidly over last 8 years, now Boost Juice Bar has over 200 stores opened throughout Australia and throughout the rest of the world. It sells fresh, healthy juice, smooth, and yogurt, which are free of preservations, artificial and colors. Boost is planning to enter into Shanghai of China market next year.…
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…
A channel of distribution is a network of organisations that, combined, perform all the functions required to link producers with consumers. Retailers need to offer right product at the right place at the right time. If the product that a consumer wants is not available then 31% of consumers will buy from a different store, 26% will buy a different brand and 24% will delay their purchase, or not purchase at all.…
They offer the opportunity for shoppers to talk style, beauty, celebrities, music, and television through high quality editorial, on our blogs, through our Magazine and in our daily edits and updates.…
The marketing channel functions that each intermediary performs in the marketing channel is just as important as the manufacturer creating a desired product. The functions are: Transactional, Logistical and Facilitating functions. Transactional function purchases products for resale or as an agent for supply of a product, they contract potential customers, promoting products, and seeking orders, they assuming business risks in the ownership of inventory that can become obsolete or deteriorate. Logistical function creates products with an assortment from several sources to service their customers, they assemble and protect products at a convenient location to offer better customer service, they purchase in bulk and break it to desired amounts to fit their customers desires and they physically deliver the product to…
Anti-aging, how to look younger, must be beautiful, you are not old. These are images that a woman sees on a daily basis. The magazines, Television commercials and even family will tell you that you have grey streaks or wrinkles. When did these things become bad? In an article of Psychology Today (Scarf Merrell, 1996);…
The authors argue that firms with IPs (Intellectual Property) and strategic intent to internationalize invest in international customer support capabilities to satisfy the demands of their most important international customers. Using a unique sample of 173 international new ventures from China and India, the authors show that such investments are associated with improved organizational learning and performance. Over time, such investments improve organizational learning and performance in international markets. The article emphasizes that investment in international customer support capabilities is critical for the success of entrepreneurial firms from emerging markets. Given that entrepreneurial firms from emerging markets face many obstacles and liabilities when they internationalize, investment in international customer support capabilities can strength their capacity to learn from early experiences with international customers and can improve their performance outcomes.…
In this task I am going to explain the process of distributing goods through different channels from the manufacturer to the customers. This report is based on the different distribution channels, which business use to distribute goods to the customer.…
Marketing 104 Product and Distribution Management Designing Channel Systems Elyssa Lucagan Julienne Anne Imperial Channel Design Factors • Product Mix and Nature of Product • Marketing Mix Elements • Width and Depth of market/outlet coverage planned • Long term commitments to channel partners • Level of customer service planned • Cost affordable on the channel system • Channel control requirements of the company CHANNEL DESIGN AND PLANNING PROCESS • Define customer needs • Clarifying channel objectives • Looking at alternative systems which can meet objectives • Cost of the channel • Evaluating alternatives to hone in the ideal channel system Channel design and Planning Process • The channel has to be a combination of REVENUE GENERATION/COMMERCIAL PART and PHYSICAL DELIVERY of goods/services/logistics/supply chain part • Pay attention to all links in reaching the product from the manufacturer to the enduser Variables which Affect the Channel Structure • Market related: the summary of the consumer needs which is aggregated at the market level • Product related: physical characteristics– size, weight, unit, value, perishability influence the channel structure. • Company related: based on the size of the company, its products, financial strength (affordability) and managerial capabilities.…
1.The International marketing is defined as performance of business activities including price, promotions, product and distribution decision and then the task of marketing research is to systematically collect data, process it in to valuable information which is vital for marketing decision.…
First is examined what the basics of distribution management within supply chain management are, to understand what principles are important for the development of a good distribution channel. A study by Sadler (2007) states…