Channel of Distribution
1.A channel of distributions any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final use.
2. The producer can choose an indirect channel but not a direct channel if he wants to provide special technical service.
3.Channels of distribution usually require longer-term planning than other marketing mix elements because channel decisions are more difficult to change quickly
4. All the above
5. As a firm goes from exclusive to intensive distribution, it loses progressively more control over price and service offered by retailers. The statement is true about market exposure.Firms that use exclusive distribution tend to have control over their prices and services.On the other hand firms that tend to use intensive distribution loose control over their price’s and services as they distribute products in many outlets.
Channel marketing involves various practices and activities that an important in the transfer of goods.For instance, they are important when transferring goods from the production point to the consumption pint.Channel marketing involves advertising and promoting goods offered by the producer.Most companies have adopted channel marketing because of the benefits associated with it. First, channel marketing allows organizations to market or promote their products.This in turn increases sales in the organization.
Though channel marketing is expensive,organizations that have adopted channel marketing have discovered the advantages of channel marketing.channel marketing affects various elements in the organization.For instance, it affects the movement of goods from the producer to the user.It also affects the product strategy in the organization.This mainly though branding policies, the ability to customize profits etc.In addition, channel marketing affects the pricing strategy used in the organization.
There are different types of channels in channel marketing. The channels play different roles. For instance, they help in the flow of goods from the producer to the consumer. The channels act as pipes through which goods are transported from the producer to the user. Different companies have different types of channels. Some of the companies use direct channels while others use indirect channels.A marketing channel is vital to all types of business both large and small.
This is because the business use the distribution channels to attain the marketing objectives set and also the business objectives.The business are able to deliver produces or services that generate high profit and increase the number of customers in the organization.While some of the firms can distribute their goods own their own,other business require people to help in the distribution of goods.Hence,the organizations are supposed to choose the right channel to distribute their products(Kurtz, MacKenzie &Snow, 2009).
An intermediary refers to a third party who offers intermediation services between two people who are trading.Intermediaries are common in distribution of goods from the producer and consumer.There are different types of intermediaries that are involved in the distribution of products before they reach the users.For instance, the retailers help in distribution of goods.The retailers always run outlets that sell goods directly to the consumers.The retailers are grouped into different categories. That is by the types of goods, services and size.
They are also grouped in terms of ownership, location and brand. Wholesalers also act as intermediaries in the distribution of goods.The wholesalers syock various types of goods from different producers.The wholesalers are supposed to sell the products to the retailers.Wholesalers mainly specialize in different products.Distributors and dealers are also part of intermediaries who are involved in the distribution of goods.The distributors and dealers take goods from the producers and sell them.
They can sell the good to end users , but not retailers.In this case, the end users are customers.The distributors do not offer a wide range of products as they can offer a single product.In most cases,distributors and dealers offer after sale services. Other intermediaries include franchise and agents.Franchise sell branded products so as to get license fee or a share in the sales.Agents offer products and goods produced by diferent producers.In turn the agents get comission(Kurtz, MacKenzie &Snow, 2009).
Sorting out refers to making a choice.The term is common in distribution of goods as producers have to select the best channel that meets their needs.Some of the companies prefer to use duierect channel of distribution because of various reasons.Others prefer to use indirect chanels.The chanelchosen depdends on the needs of the business.Allocation refers to setting a side something.For instance, the businses can set aside money that can be used to distribute goods from the producer to customers.
Diferent companies set aside diferent amounts of resources to use in the dustribution of goods.Some of the companies do not set large amounts of money while others do.The amount of money a company invests in the distribution of goods determines the kind of outcome.Companies that set aisde enough money find it easy to distribute their products using a wide range of channels.So, companies should be careful when setting the amount of money to use (Kurtz, MacKenzie &Snow, 2009).
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