Preview

Strategic Importance of Distribution in Marketing

Good Essays
Open Document
Open Document
595 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Strategic Importance of Distribution in Marketing
I am addressing the strategic importance of distribution channels in marketing by exploring how these channels help businesses meet their marketing and sales objectives. A marketing channel is defined as the means by which the physical flow of goods and services are distributed to consumers and users. A marketing channel is critical to large and small businesses because they use these distribution channels to meet their marketing and business objectives by providing and delivering products and/or services that generate profit and increase their customer base.
While some businesses can handle all factors and aspects of its own distribution, others require some level of distribution partnership. Choosing the right distribution channel to move products or services to the end user is a long-term strategic decision and varies according to the product, service and market. When choosing a distribution strategy, a marketer must determine what value a channel member adds to the firm’s products and/or service. A well-chosen channel is necessary because it constitutes a significant competitive advantage and is designed to save on cost, improve and increase efficiency, provide routinization of transactions, provide a larger customer base, and allows businesses to focus on other aspects of the organization. It is important that the channel also provide businesses with strategic promotion, brand strategy, and provide convenience for customers while bridging the gap between the assortment of goods and services generated by producers and those in demand from consumers. Poorly chosen channels can have long-term consequences and can ultimately lead to a superior product or services failure in the market.
Having access to good distribution is fundamental to good marketing. Within the distribution channel is the ability to use intermediaries to strategically market a product or service. Business operators need to be able to deliver their products and/or services to the

You May Also Find These Documents Helpful

  • Satisfactory Essays

    This is an Overview of Distribution Channels, and our target market’s needs in distribution channels.…

    • 488 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    In today’s market situation, consumer has various options and choice. He can choose the best options available in the market, which gives them better service for the long time. So, in order to fulfill all the needs and demands of the consumer, the manufacturing companies should concentrate on the distribution channel and should make an effective and efficient distribution network. As we all know that the distribution channel is only one way through which the product is reaches to its consumer. So the company should have an effective distribution network which satisfy the demand and provide services to the consumer.…

    • 1446 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Pelton, L. E., Strutton, D. & Lumpkin, J. R. 2002, Marketing channels: a relationship management approach. McGraw-Hill Irwin: Boston, p. 387.…

    • 1840 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Marketing Channels

    • 1234 Words
    • 5 Pages

    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…

    • 1234 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Marketing Skittles

    • 1081 Words
    • 5 Pages

    The marketing channel functions that each intermediary performs in the marketing channel is just as important as the manufacturer creating a desired product. The functions are: Transactional, Logistical and Facilitating functions. Transactional function purchases products for resale or as an agent for supply of a product, they contract potential customers, promoting products, and seeking orders, they assuming business risks in the ownership of inventory that can become obsolete or deteriorate. Logistical function creates products with an assortment from several sources to service their customers, they assemble and protect products at a convenient location to offer better customer service, they purchase in bulk and break it to desired amounts to fit their customers desires and they physically deliver the product to…

    • 1081 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Channels of Distribution

    • 1224 Words
    • 6 Pages

    Once you have selected and developed a unique product or business idea, correctly positioned and targeted it to buyers, and developed your packaging and pricing, the selection of distribution channels and sales representation is key to successful marketing.…

    • 1224 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    general insurance

    • 1041 Words
    • 5 Pages

    Effective distribution channels – the efficacy and cost of various distribution channels are significant to ensure success of players in the insurance business, more so for retail businesses.…

    • 1041 Words
    • 5 Pages
    Satisfactory Essays
  • Good Essays

    Principles of Marketing

    • 543 Words
    • 3 Pages

    An individual firm’s success depends not only on how well it performs but also on how well its entire marketing channel competes with competitors’ channels.…

    • 543 Words
    • 3 Pages
    Good Essays
  • Good Essays

    xaxa

    • 5272 Words
    • 22 Pages

    When costs can be spread across increasing units of production or in serving multiple customers. Businesses that have favorable economies of scale (like many Internet firms) are sometimes referred to as being highly scalable.…

    • 5272 Words
    • 22 Pages
    Good Essays
  • Better Essays

    Chapter 12 Zara

    • 20451 Words
    • 82 Pages

    We now arrive at the third marketing mix tool—distribution. Firms rarely work alone in creating value for customers and building profitable customer relationships. Instead, most THE CONCEPTS are only a single link in a larger supply chain and marketing channel. As such, an individual firm’s success depends not only on how well it performs but also on how well its entire marketing channel competes with competitors’ channels. To be good at customer relationship management, a company must also be good at partner relationship management. The first part of this chapter explores the nature of marketing channels and the marketer’s channel design and management decisions. We then examine physical distribution—or logistics—an area that is growing dramatically in importance and sophistication. In the next chapter, we’ll look more closely at two major channel intermediaries—retailers and wholesalers. We’ll start with a look at a company whose groundbreaking, customer-centred distribution strategy took it to the top of its industry.…

    • 20451 Words
    • 82 Pages
    Better Essays
  • Satisfactory Essays

    Source: “Marketing Management: A South Asian Perspective (14 th edition)” by Kotler, Keller, Koshy, Jha…

    • 1839 Words
    • 24 Pages
    Satisfactory Essays
  • Powerful Essays

    Over the years there has been a growing importance of Marketing channels as a strategic component of the marketing mix along with other strategic components of product, price and promotion. The selection or choice of the appropriate channel will result into efficiencies and competitiveness.…

    • 8626 Words
    • 35 Pages
    Powerful Essays
  • Good Essays

    First is examined what the basics of distribution management within supply chain management are, to understand what principles are important for the development of a good distribution channel. A study by Sadler (2007) states…

    • 1673 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    • Distribution channels are intermediaries used by the producers to bring their products to the market. • Why? Because the use of intermediaries bring greater efficiency in making goods available to target markets. In other words, they match the supply with the demand. • Most important benefit of using intermediaries is that they provide economies. They reduce the amount of work that must be done by both producers and consumers.…

    • 2536 Words
    • 11 Pages
    Satisfactory Essays
  • Good Essays

    The market channel strategies are broad principles by which the firm expects to achieve its distribution objectives for its target market. The design of the channel should contribute to the firm’s quest for Differential Advantage. It is the responsibility of administration of existing channels to secure the cooperation of channel members in achieving the firm’s distribution objectives…

    • 717 Words
    • 3 Pages
    Good Essays