December 2, 2010
In business, it is essential for management to understand the role and importance of marketing to his or her organization. Management utilizes marketing tools to satisfy the needs of customers, and to gain a better understanding of the product itself. The goal of this paper is to discuss and analyze the distribution practices of Land O Lakes butter. In review of the distribution practices, I will also attempt to show the importance of knowing and understanding the product you are marketing. Distribution Strategies
A distribution strategy is in relation to how a company will distribute the product or services they are offering to the consumer. The distribution of a product is essential to the organization. Making sure the product is at the right place at the right time. If the demand for the product is underestimated, the consumer will not be able to purchase the product, which will affect profits. There are two channels of distribution; indirect and direct. Indirect channels of distribution involve distributing the product to different outlets before it gets to the retailer or consumer, for example the product is sold to a manufacture, then to a wholesaler, and then on to the retailer. Direct channels of distribution involve shipping the product directly from the manufacturer to the consumer. There are several types of distribution strategies. The most common types are intensive distribution, exclusive distribution, and selective distribution. Intensive distribution is more commonly used to distribute low priced or impulse purchases, for example soft drinks. Exclusive distribution involves limited distribution to a single outlet, for example cars. Selective Distribution is when an organization uses a select and small number of outlets to distribute his or her product. Land O Lakes uses an indirect distribution channel and intensive...