In marketing, it is impossible to avoid consideration of marketing mix, which involves 4Ps. The 4Ps encompass: place, promotion, price and product (Viardot, 2004).
This exposes one of crucial obligations of any marketing manager. That is, a marketing manager is responsible for formulating effective distribution strategy (place) in order to keep the other Ps moving (Distributionstrategy. org. , 2013).
As a result, studies described distribution strategy as crucial prerequisite for success of any business (Chapter 15: Product Distribution, n. d. ).
It is a plan of actions employed to move service/product from the manufacturer to the end consumers through different approaches such as physical distribution and distribution channels. Generally, it tries to describe where and how customers purchase firm’s service/products. Distribution strategy focuses on various factors, which encompass: location of the firm and target market, approaches of reaching the target market, warehousing, as well as transportation. In this paper, distribution strategy critically discussed besides evaluating how it used in consumer market.
It hypothesized that good distribution strategy contributes to health relationship between businesses and their consumers. ? Important of research The research is very important in a sense that it will foster deeper understanding of distribution strategy, as well as its application in consumer market. Additionally, the research will aid in disclosing various challenges encountered in distribution strategies and how such challenges addressed. Further, the research will help in comprehending the impact(s) of good/poor distribution strategy on business. Objective of research
The Research paper on Understanding Of Marketing And Consumer Behavior
... basic components of the marketing mix-the combination of product, pricing, promotion, and distribution (place) strategies used to market products. Market begins with a product ... There are four basic techniques of market research: Observation-market research technique that involves watching and recording consumer behavior. Survey- market research technique using a questionnaire that ...
The main objective of this paper is to acquire sufficient understanding of distribution strategy and how it is applied in consumer market. The research will achieve this through answering the following questions: i)What is distribution strategy ii)What are components of distribution strategy? iii)How to select appropriate distribution strategy/channel? iv)What are different features of distribution strategy? v)How to promote efficiency of distribution strategy? Plan of research I. Title: Distribution Strategy II. Investigator Name: III. Concepts and related work i)Concepts Strategy Distribution channels Distribution strategy
ii)Related work Marketing International distribution channels IV. Hypothesis, research questions, or goals of the research The overarching objective of the research is to foster deep understanding of distribution strategy and its use in consumer market. The research questions considered in this research includes: i)What is distribution strategy ii)What are components of distribution strategy? iii)How to select appropriate distribution strategy/channel? iv)What are different features of distribution strategy? v)How to promote efficiency of distribution strategy? V. Methodology Selection and analysis of various distribution channels
Chapter 2 Literature Review (Theoretical & Discussion) Components of distribution strategy Distribution is a mandatory activity in any business organization. After production, organizations distribute their products or/and services to customers situated in different regions. Chapter 15: Product Distribution, (n. d. ), provides two different components of distribution strategy. These encompass: Physical distribution Physical distribution is the definite movement of services and products from the manufacturers to the end consumers. There are various activities, which are involved in physical distribution.
These activities are: inventory control, customer service, handling of materials, warehousing, transportation, and order processing Chapter 15: Product Distribution, (n. d. ).
This is sufficiently supported by Distributionstrategy. org. , (2013), which provided transportation and storage as crucial pieces of distribution strategy. Products transported from the production point to points where customers can easily access them. Additionally, it informed that transporting products directly from the production point to the market is unrealistic. As a result, storage is involved. Distribution channels
The Research paper on Product development in resto bar
Arellano University 2600 Legarda St. Sampaloc, Manila School of Hospitality and Tourism Management In partial fulfilment of Requirements In Methods of Research Submitted to: Mrs. Racquel Salvador Submitted by: Renato C. Ty Jr. Jashua Rocky Santos Froilan G. LLovit Rudolf T. Retuya Paul Mikki V. Manuel Chapter 1 Problem and its Background Introduction Talking about food habits and taste every ...
Different authors have dissimilar definitions as far as a distribution channel is concerned. However, it can generally describe as the specified path followed by products and services as they move from the producers to the consumers (Chapter 15: Product Distribution, n. d. ).
Organizations employ distribution channels to ensure that consumers can access the goods and services they need. Marketing intermediaries, who include retailers and wholesalers, are main constituents of distribution channels. They majorly function as a bridge between producers and consumers whilst adding value of products/services.
Segetlija, Mesaric, & Dujak, (n. d. ) also pointed out that distribution strategy can be classified into two. They referred distribution channel as acquisition distribution system. However, the authors argued that distribution channel should be addressed as marketing channel due to the complexity of the intermediaries. Among other advantages of marketing channels, previous literature explains that these channels facilitate contact efficiency. That is, they decrease the number of contacts needed in transactions (Ferrell, & Hartline, 2011).
Factors considered in selection of distribution channels
Chapter 15: Product Distribution, (n. d. ) provides various factors, which should be considered in selection of distribution channels. These factors encompass: The producer As explained by Chapter 15: Product Distribution, (n. d. ), marketing and financial resources are critical factors in determining the kind of channels, which an organization should use. That is, organizations with adequate marketing and financial resources besides wide product line can effectively use short distribution channels. ? The market It is informed that market factors focuses on producer’s target market.
The Term Paper on Global Placement and Distribution Channels in reverence to Coca Cola
... a company has to define its distribution channels such as organizations, agents, wholesalers, retailers, etc. who move the product to the final consumer. The ... pushcarts13 Image: Pushcarts and bicycle distribution, see.: http://www.colalife.org/2010/12/19/how-coca-colas-distribution-system-works/ Other important factors that influence the distribution strategy are the choices made ...
This helps to determine which and how many distribution channels a manufacturer should use to deliver the produced services/products. For instance, studies inform that a producer who intends to market his/her products in different segments should consider utilization of different channels. The product/service Previous research explained that different products require dissimilar channels. For instance, Chapter 15: Product Distribution, (n. d. ) pointed out that expensive, perishable, customer made and complex products require shorter distribution channels. The competition
Before deciding which channel to employ, organizations should examine the performance of their intermediaries. Report by Chapter 15: Product Distribution, (n. d. ) explained that intermediaries who promote organization’s products boost the competitiveness of the organization in the market. Further, studies pointed out that, tactical and strategic decisions are the two critical decisions, which should consider when creating distribution channel (Segetlija, Mesaric, & Dujak, n. d. ).
The decisions’ complexity is influenced by other various factors, which are: political, social, economic and cultural.
Paley, (2007) discussed various factors, which are essential in distribution strategy. These factors encompass: target customers, internal operations, cost control and channel control. As discussed by the Paley, these factors have proved to be fruitful in several organizations. The author provides Dell as example of an organization, which has succeeded through application of such factors. Attributes of distribution strategy Apart from the different components, previous research also provides various attributes of distribution strategy.
The attributes are classified into four categories, which include: Customer orientation This encompasses activities are directed to serve the customers. Borella, & Padula, (2010) provided review of the delivery schedules, evaluation of customer satisfaction and after-sales service as some of activities involved in customer orientation attribute. Segetlija, Mesaric, & Dujak, (n. d. ) explained that distribution channels’ strategic management has assumed another direction in contemporary business environment. Attribute of customer orientation is one core factor, which has initiated the change.
The Research paper on Online Distribution Strategies
The current issue and full text archive of this journal is available at www. emeraldinsight. com/0959-6119. htm Online distribution strategies and competition: are the global hotel companies getting it right? Gabriel Gazzoli ? Institut Hotelier Cesar Ritz, Le Bouveret, Switzerland Online distribution strategies 375 Received 25 May 2007 Revised 3 July 2007 Accepted 18 October 2007 Woo Gon Kim ...
Organizations have comprehended that they can only succeed through focusing on distribution strategy. Previous literature explained that effective and efficient distribution strategy is a source of competitive advantage for many organizations. Centralized distribution As cited by Borella, & Padula, (2010), previous researchers such as Cooper (1998) and Loomba (1998) this practice have numerous advantages, which include: fixed transport costs, increased reliability of lead time and declined inventory costs among others. Receptiveness to the consumer
Early researchers describe this as production and distribution being focused on market or consumer (Borella, & Padula, 2010).
Such researchers provided different scales such as SERVPERF and SERVQUAL, which used in measuring this attribute. Firm-consumer operational collaboration Similarly, previous researchers recommended that this collaboration is created through information sharing on demand and anticipating of sales and demand (Borella, & Padula, 2010).
Segetlija, Mesaric, & Dujak, (n. d. ) demonstrated that these attribute have been acknowledged by other researchers. For instance, Segetlija, Mesaric, & Dujak, (n. d. ) cited Hyvonen and Tuominen who argued that many organizations have failed to use distribution channel collaboration and market orientation not only to attain but also to maintain their performance advantage in the changing business world. It is apparently informed that distribution strategy has enduring effects. Altering decisions involved in distribution strategy is described as one of challenging task in organizations. For instance, Segetlija, Mesaric, & Dujak, (n. d. ) cited various researchers who recognized that changing distribution channels is extremely costly.
The fore researchers reported that distribution strategy has intensive impact on other marketing features. For instance, it initially noted that distribution strategy facilitates smooth running of other Ps (promotion, product, and price).
Segetlija, Mesaric, & Dujak, (n. d. ) demonstrates that this argument is well supported by other researchers. For instance, they cited Keller and Kotler who found that sales of a certain product are affected by distribution strategy. To clarify this, the researchers recommended that customers will absolutely go away if they fail to get their target product(s).
The Essay on Distribution Strategy
Introduction The core of this presentation is to discuss the theory of distribution strategy with the underlying real life examples of McDonald’s fast-food restaurants in Australia. In other words, the aim is to discuss McDonald’s distribution channel, the way this fast-food restaurant gets its products to the market. Nonetheless, this presentation will demonstrate that ...
Moreover, Ferrell, & Hartline, (2011) explained that appropriate distribution strategy aids an organization to avoid other issues associated with promotion, products and pricing. Studies indicate that various managers in different organizations have comprehended the importance of good distribution strategy. Promoting efficiency of distribution strategy Previous literature identified that numerous conflicts occur within a distribution strategy. Chapter 15: Product Distribution, (n. d. ) explained that such conflicts have enormous impact on efficiency of distribution strategy.
Nevertheless, the literature identified an approach, which can promote the efficiency through eliminating such conflicts. Chapter 15: Product Distribution, (n. d. ) provides vertical marketing system as an approach, which can be used to eliminate conflicts within a distribution strategy and boost its efficiency. Segetlija, Mesaric, & Dujak, (n. d. ) explained that vertical marketing systems are created through integrating roles of different members involved in a distribution channel. However, the author reported that these systems are employed as expansion tools where certain business systems take other channel participants’ roles.
Success of certain organizations compared to others triggered various researchers to study why this happened. As informed by Borella, & Padula, (2010), the researchers identified that the successful organizations matched their structures and business strategy appropriately. They referred this alignment as vertical alignment. It is explained that the alignment takes place when manufacturing, supply and distribution strategies are matched with the overall business strategy. This apparently supports the argument by Osman, & Westgerd, (2008) that distribution strategy depends on the size of the organization.
The Research paper on CASE STUDY ON STRATEGIES OF SALES AND MARKETING FOR BUDGET HOTELS
... marketing strategy is a set plans or actions that attempts to satisfy the customer’s expectations by the use of organization’s ... originating from the rural population. MARKETING SYSTEM Marketing activity presently dealt with focused ... rules and regulations, pricing and distribution are as per laid down ... outlets Advertising Options Discount Durability Channels Personal selling Features Allowances Appeal ...
For instance, international organizations have different distribution strategies compared to local/domestic organizations. Though there are other systems such as multi-channel and horizontal, vertical marketing systems have been given a great focus. As a result, different researchers have provided similar categories of vertical marketing systems. For instance, Segetlija, Mesaric, & Dujak, (n. d. ) segmented the vertical marketing systems into: contractual, corporate and administered. Recent studies reports that distribution strategy is becoming more complex in modern business world.
For instance, Segetlija, Mesaric, & Dujak, (n. d. ) asserted that multi-channel and hybrid marketing channels are gaining great popularity nowadays. The hybrid marketing channels seem to support the market attribute, whereby a producer is advised to consider various marketing channels in different market segments. That is, hybrid marketing channels discourages use of single channel in distribution. On the other hand, multi-channel system maximizes control, resilience, as well as channel coverage. Additionally, the system mitigates conflict issues and expenditures.
However, the literature of review identified that hybrid distribution channel is highly employed in modern business world. This is due to its ability to facilitate innovations especially for emerging businesses. Identifying the appropriate route to reach the target market is one of key approaches of mitigating distribution costs and attaining market coverage. Various studies report that this approach has successfully worked in different organizations. Coca Coal Company is an example of an organization, which used by several authors to prove the capability of the approach.
For instance, Dent, (2011) reports that the company has used this approach; as a result, it is hard to spend a couple of minutes before the consumers can purchase Coke. Nevertheless, the author points out that various organizations are still in dilemma about, which distribution strategy will promote competitiveness of their products/services in the market. Chapter 2: Literature Review, (n. d. ) also refers distribution strategy as place (channel) strategy. The chapter further categorizes it into two. That is, push and pull strategy. As explained, push strategy involves creation of demand through various activities such as trade promotions.
Promotions start from producers and move all the way to end consumers. For instance, an organization promotes its wholesalers, the wholesalers promote the retailers, and eventually retailers promote the end consumers. Contrary to push, pull strategy entails creation of demand through intensive investing on consumer promotion and advertising. Pull strategy triggers consumers to make specific orders through retailers, wholesalers and eventually the manufacturer. Chapter 2: Literature Review, (n. d. ) explained that good distributor helps organizations to avoid moral hazard and information search costs.
Various individuals thought that superior technology would help organizations to avoid information search cost. However, this is not the case for all organizations. The chapter argued that internet congested with a lot of information. This makes hard for internet users to locate the targeted information. Organizations, which have enduring anonymous brand image, can avoid information search costs since consumers can easily locate the targeted information through the internet. Various researchers have informed that businesses paid less attention to distribution and supply chains. However, this has drastically changed in modern world.
In other word, formulation and management of distribution strategy, and supply chain relationships have recognized as core sources of business performance and competitive advantage (Ferrell, & Hartline, 2011).
The authors explains that various strategies such as pricing, product differentiation and promotions lack the capability to offer enormous benefits to an organization compared to distribution and supply chain relationships. Various organizations have failed due to poor distribution strategies. For instance, Czinkota, & Kotabe, (2000) explained that various foreign firms have failed in Japan due to weak distribution channels.
Chapter 3 Conclusion and remarks The paper has critically discussed distribution strategy, which involves actions employed to move products and services from the producer to the end consumers through various approaches. There are two different components of distribution strategy, which encompass: physical distribution and distribution channels. Studies have informed that physical distribution bridges the gap between the producers and consumers while distribution channels are the specified paths followed by products/services from the producers to the end consumers.
Selection of distribution channels entails various factors. These factors are: the producer, the market, the product, and the competition. Additionally, it is informed that both tactical and strategic decisions are very critical as far as selection of distribution channels is concerned. Apart from the components, researchers have provided several attributes of distribution strategy, which include customer orientation, centralized distribution, receptiveness to the consumer and firm-consumer operational collaboration.
As discussed in the paper, distribution strategy has intensive impact on other Ps involved in marketing (price, promotion and product).
Thus, it influences overall performance of an organization. However, researchers identified vertical marketing system as effective approach of promoting efficiency of distribution strategy. Organizations that have adopted good distribution strategy that created value to their customers and increases possibilities of long-term success. ?
