Running head: DISTRIBUTION CHANNELS
Distribution Channels and Their Impact on Marketing Strategies Name:
This paper discusses the importance of choosing appropriate channel members and also identifies and discusses criteria that should be used by the car compact disc player manufacturer when evaluating potential intermediaries for the firm’s distribution channel. This is important for this firm since it’s only through these marketing channels that their product is going to reach the consumer. The customer in this case is the auto makers who are intended to buy 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 specified that the manufacturer uses two distribution channels. In one case he distributes the CD player directly to the auto makers and in another case he distributes the product to electronic stores. Key words: Channel members, criteria for choice
Distributions Channels and Their Impact on Marketing Strategies Distribution channels are 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 purchaser is engrossed by activities involved in delivering that product to the consumer (Julian, 2008). Channel members are particularly important since directly affects certain factors such as customer service, product delivery and availability. Julian (2008) argues that the cost of marketing any product has increased over the past 15 years while production cost has reduced. This is because the market has segmented and media and distribution channel have multiplied. As a result, the choice of a channel member is based on value analysis, same way consumers do when they analyses products before purchasing. This paper focuses on choice of appropriate...
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