Distribution Channels for Motorola Xoom
Historically, marketing channels have been viewed as a bridge between producers and users of goods and services. Since Motorola is aiming for taking over a amount of the market share for Tablets in the UK and it is therefore very important that they choose the distribution channels carefully since the distribution channels will affect every other marketing decision such as pricing, sales force, communication etc. Distribution channels are all the different organizations the product must pass through from production to consumption.
It is important for Motorola to think long-term when they choose their different distribution channels. While pricing, promotion or advertising could easily be changed contracts with the different distribution channels makes it harder for Motorola to replace or changes these. Channel members will add value by reducing the place and possession gaps that separate the Motorola Xoom and the consumers who want to buy it.
There are different options when developing a distribution strategy. Motorola can choose between direct-distribution or indirect-distribution. Direct distribution involves selling the Xoom Tablet directly from Motorola to the customer such as at a Motorola store or their website. Indirect distribution uses levels as intermediaries or retailers who sell the product to the customers. The more channel levels Motorola uses, the less control they will have.
There are four major steps Motorola has to do before they choose distribution channels for the Xoom Tablet (Kotler, 2008):
Analyzing costumer needs
Motorola have to do research to find out what their customer needs are. Where do the costumers want to buy the product? Do they want to buy it online, from retailers, how far are they willing to travel to buy the product? They also have to know what the customer wants and expects from each channel level. Do they...