Marketing Channels

Running maneuver scattering CHANNELS Distri justion roadways and Their Impact on Marketing Strategies Name Institution DISTRIBUTION CHANNELS Abstract This stem dishusses the importance of choosing appropriate business line members and also identifies and discusses criteria that should be utilize by the car iron disc player shaper when evaluating potential intermediaries for the firms distribution groove. This is all important(predicate) for this firm since its only through these tradeing carry that their production is going to reach the consumer.The guest in this case is the auto makers who atomic number 18 mean to demoralize the newly developed compact disc player to fix them in the automobiles. The method for marketing this product is therefore crucial. In our study it is qualify that the producer uses two distribution channels. In champion case he distributes the CD player straight off to the auto makers and in an new(prenominal) case he distributes the pro duct to electronic stores. Key words Channel members, criteria for picking CHANNEL DISTRIBUTIONDistributions conduct and Their Impact on Marketing Strategies Distribution channels be the key determinants of how any manufacturing company reaps from the products that come from their manufacturing plants. Characteristically, approximately half that price paid for merchandise by a bargain forr is engrossed by activities involved in delivering that product to the consumer (Julian, 2008). Channel members are oddly important since directly affects certain factors such as node assistance, product manner of speaking and availability.Julian (2008) designates that the exist of marketing any product has increased over the past 15 years while exertion toll has minify. This is because the market has segmented and media and distribution channel cede multiplied. As a result, the choice of a channel member is based on value analysis, same way consumers do when they analyses products be fore purchasing. This paper focuses on choice of appropriate channel member and the criteria that we should use to chose the beat channel member. Discussion The choice of a channel member is of paramount importance.A marketer has to determine the benefits reaped from utilizing a certain channel partner and compare this with the cost incurred for victimisation this service. Some of benefits of choosing an appropriate channel member include cost saving in specialization. Rolnicki (1998) argues that specialist members of distribution perform the task more efficiently and at reduced cost than companies, who lack the experience in this field. Next is reduction of exchange succession whereby the products reach the intended final consumer in time, since the channel member is experienced in what they do.The third benefit is nodes want to whatchamacallum shop for variety. Julian (2008) stresses that client CHANNEL DISTRIBUTION depart always choose electrical distributor outlets that cod a variety of products, in order to reduce the time they spend shopping. Therefore resellers have to purchase different products from different distributors and stock them in one centre so that the customer stomach find these commodities from one location. Fourthly the resellers have to sell the commodities in small quantities so that the consumer can manage the price. This is know as bulk breaking as described by Rolnicki (2004).The reseller also creates sales when there is exact for the product. Sometimes they perform active selling role using persuasive techniques (Gorchels, Chuck & Marine, 2004). They also gap financial support to consumers whereby they sell goods to them on credit, purchasing using payment arrangement, delaying launch of payments and allowing trade in or barter trade. Resellers also provide information on the product and therefore help market the product. The channel members who handle the producers product to the end user are nearly important.This is b ecause the customers will always confrere these products with the last person who sells the product to them. If the channel does not match the customers call for, it is likely that the shaper is going to lose customers and the sales volume is going to reduce (Rolnicki, 2004). Bert (1998) explains that the best channel that any producer should prioritize on is one that makes the end product user happiest, so that they are always spontaneous to buy again the same product from the same channel member. So its up to the manufacturer to select a marketing channel that best serves the interests of the customer.There are various criteria that are use by the manufacturers to evaluate potential intermediaries for firms distribution channel. Among this criteria include 1. Lot size 2. hold time DISTRIBUTION CHANNEL 3. Spatial convenience 4. Product variety 5. Service backup I will discuss each of the above criteria which should be used by the compact disc manufacturer to evaluate for an a ppropriate distribution member Lot size this refers to the number of units a typical customer is allowed to buy by a marketing channel in a particular get occasion.When the herd number is small, then grater output service should be provided by the channel (Kotler, 2000). In our case above, if the compact disc player manufacturer selects a channel member that offers small number of CD players to buying customers, this means increased costs for the manufacturer, and an alternative channel member should be sought. Waiting time and delivery time-this refers to the length of time that the customer waits, for the receipt of goods. Customers always prefer delivery channels that are fast and efficient. Fast delivery of run requires output levels of great services (Kotler, 2000).The CD player manufacturer needs to engage a channel member that provides fast services at convenient time to the customer. Spatial convenience-This expresses the extent to which the marketing channel simplifies the purchasing of the products by the customers (kotler, 2000). Customers will always prefer to purchase the products which do not involve so umpteen formalities and that are easy to buy (Bert, 1998). The CD manufacturer should involve a channel that meets this requirement. DISTRIBUTION CHANNELS Product variety-this refers to the soupcon of garland that the particular marketing channel provides.Customers always prefer a marketing channel that offers grater assortment breath because this will most likely meet their exact needs (Kotler, 2000). In regard to this the CD Player manufacturer should consider also incorporating an installation kit alongside this product so that the customer buys the whole package from one place. Service backup-This refers to other services that are provided by the channel. such(prenominal) services include installation, repairs, credit and delivery. A channel thats provides more backup services is considered to do more work (Bert, 1998).In such a case th erefore the channel is more costly. In the CD player manufacturing firm the marketing manager should understand the output services required by the target customer, provided the increased output services means increased costs for the channel and highschooler prices for the customers. In conclusion with review of the importance of channel distribution and criteria for evaluation of distribution channels discussed above, the company can market its compact disc in a smart way meaning that all criteria used should be specific, measurable, achievable, realistic and time bound.DISTRIBUTION CHANNELS Reference Bert, R. (1998). Marketing Channel. Olorando Harcourt Brace College Publisher. Dent, J. (2008). Distribution carry Understanding and Managing Channels to Market. London Kogan Page Limited. Gorchels, L. , West, C. , Marine, J. E. (2004). Managers Guide to Distribution Channels. New York McGraw Hills Companies. Kotler, P. (2000). Selecting and Managing Marketing Channels. New York Pre ntice-Hill. Rolnicki, k. (1998). Managing Channels of Distribution . New York Amacom Division America Management.Marketing ChannelsSUMMARY REPORT What is marketing channel? Are sets of interdependent organizations involved in the process of making a product or services available for use or consumption? They are set of pathways a product or service follows after production, culminating in purchase and use by final consumer. The importance of channels One of the captain roles of marketing channels is to convert potential buyers into a profitable order. Marketing channels also play a substantial opportunity cost. Different consumers however have different needs during the purchase process.Nunes and Cespedes argue in many markets, buyers fall into four category 1. Habitual shoppers- purchase from same place in the same manner over time. 2. High value deal seekers-know their needs and channel surf a great deal before buying at lowest possible price. 3. Variety-loving shoppers-gather in formation in many channels take advantage of high touch services and then buy in their pet channel, regardless of price 4. High-involvement shoppers-gather information in all channels, make their purchase in a inexpensive channel, but take advantage of costumer support from high touch channel.The role of marketing channels Delegations mean relinquishing some control over how and to whom the products are sold. Producers do gain several advantages by using intermediaries 1. Many producers lack the financial resources to carry out direct marketing. 2. Producers who do establish their testify channels can often earn a greater return by increasing investment funds in their main business. 3. In some cases direct marketing simply is not feasible. Channels functions and flows It will be discussed one by one. Using a chart Channel levels It will be discussed one by one. Using a chartMarketing ChannelsThe shifting of the flow as per the simulation that Is given in the question will be by m aking he distribution of the product in the discussion section stores or the drug stores or even from the distributors directly by selling to the customers but this will make the sale of the Independent Beauty Consultant decrease because most of her customers will have many other ways to purchase the product that they are used to buy and this will let the beauty adviser not have the featureership of the product. N the other hand all the department stores and the other stores selling the products to the customer will face a high selling as most of the customers will be shifted to them because of he new distributors that has Join the marketing flow. Many other customers will go and buy the products directly from the company as they will be selling the product directly to the customer and it will be with less price then all the other distributors because it will be a direct from the owner of the product. C.Nine customers role In all n s Tow w express joy Trot Dulling Lyreco Trot te n Death consultant or the other shops because each business is targeting their own benefits and it will be the best way for the customer to buy the product directly from the tatty consultant as they will buy only the products that they really need and the ones that suites them. The beauty consultant will be able to recommend to her customer the products that they need because of the knowledge and experience that she has gained. Her main target will be gaining the customer satisfaction to build a long term relationship with them to improve her business.But on the other hand all the other stores will focus on the percentage of selling the item because there main purpose will be increasing the percentage of sales in their business. Page 30 Question 6 Selling and Servicing an Ultrasound Machine I I Hospital indispensability Room I Academic Medical Researcher on a tight government-funded budget using the car for laboratory research I descriptor I Service Outplacement Level I Descript or I Service Outplacement Level I Bulk-breaking I Emergency Room Needs very high qualification machines that meet all the needs.I High I The Lab needs a machine that fulfills the researchers need. I Medium I Spatial Convenience I Search for the best quality and brand machine that is offered by the companies and distributors. I Medium I Search for the lowest cost machine that is found in the market based as the government budget. I High I Waiting and Delivery season I Emergency room cannot wait because always the machines have to be ready for any collar that may happen anytime.I High I After getting the machine the Lab can activate to continue their researches. I Low Assortment animadvert I The Emergency Room needs the best quality and brand to suit all the needs of the hospital. I High I The Lab needs a simple machine for the use of the researches only. I Low Customer Service I The distributor has to give their recommendation for the best brand and quality that will satisfy the n eed of the Emergency Room.