Channels of Distribution
Once you have selected and developed a unique product or business idea, correctly positioned and targeted it to buyers, and developed your packaging and pricing, the selection of distribution channels and sales representation is key to successful marketing.
It's fairly easy to change many of your marketing tactics and strategies on a periodic basis; pricing, packaging, and product mix are among these flexible choices. However, distribution and sales decisions, once made, are much more difficult to change. And distribution affects the selection and utilization of all other marketing tools.
There is a wide variety of possible distribution channels, including:
Retail Outlets owned by your company or by an independent merchant or chain
Wholesale Outlets of your own or those of independent distributors or brokers
Sales Force compensated by salary, commission, or both
Direct mail via your own catalog or flyers
Telemarketing on your own or through a contract firm
Cyber Marketing, surfing the newest frontier
TV and Cable direct marketing and home shopping channels
Distribution choices for a service business follow the same lines as those for a physical product. For example, financial planning services may be offered from printed material, sold at retail by consultants, delivered electronically by computer, or relayed by phone, fax or mail.
Steps for selecting distribution and sales force representation include:
Identify how competitors' products are sold.
Analyze strengths, weaknesses, opportunities, and threats for your business.
Examine costs of channels and sales force options.
Determine which distribution options match your overall marketing strategy.
Prioritize your distribution choices.
Identify How Competitors' Products are Sold.
Small businesses may face a particular difficulty in identifying their directly competitive selling channels, not usually in identifying where target buyers buy competitive products. How Are Competitor's Products Sold?
Small companies should make a list of any competitors in their marketing area...
... useful marketing tool to indicate certain marketing strategies to be adopted for products identified ... of marketing strategies and activities rather than an independent course of sales. Strategies adopted by marketing managers can either promote or kill a product. Especially ...
... the marketing tools that each uses and compare the customer service. Couples Marketing ToolsWhen looking at marketing a business the ... and create customer loyalty with existing customers. A companys success can depend on how well employees are able to connect ...
What is a distribution channel? what are Conventional Distribution Channel and Vertical Marketing System? Compare them.
... vertical marketing system. Conventional Distribution Channel According to Kotler and Armstrong (2001), a conventional distribution channel is a channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking ...
... a market for a few month the price of the Nokia 7210 will slowly start to fall. Nokia main strategy is to keep price of handsets as low as possible and avoid pricing wars. Place Distribution Channel Direct Selling ...
... with distribution through major retail outlets mainly on the east coast. Preliminary market entry in this fashion will allow the SpaceSaver to build brand recognition and develop a potential customer base for independent selling ...
... new product success, sales growth and return on investment. 'Activity-based cost accounting' will be used to determine the true profitability of different activities to "give managers a clear picture of how products, brands, customers, facilities, regions or distribution channels both ...
... The marketing plan (product mix plan, sales plan, advertising plan, distribution...) is to be developed so that objectives are implemented and controlled. The plan will enable to develop a budget requirement. A detailed plan provides direction and ...
... have retailer promotional support when this method is in use. Exclusive distribution occurs when there is only one outlet in a large market area. Products are ...