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Tampilkan postingan dengan label distribution channel. Tampilkan semua postingan

Author: Henry


Place in the marketing mix refers to the distribution channel. The mechanisms put in place to ensure proper and efficient availability of products to the all important end user. For the product to maintain competitiveness, the locations where the product can be purchased should be convenient to the buyers and cost effective to the producer. There are various distribution channels that can be used to distribute the product both direct and indirect to ensure proper customer satisfaction and after sale service.
For the product to reach a large market there will be an essence to involve intermediaries through franchising and licensing. This will help to minimize risks when venturing into new markets, to gain experience in management and to enjoy the trade marks of the already established firms. It will also ensure uniform quality, cost and customers service availed to consumers (Chuck, Linda, & Edward, 2004).  Foreign firms will be used to market and sell the products in their countries. Little funds will be used by the manufacturer to market the product if other firms are used. Product market penetration and avoidance of non tariff barriers in the foreign markets.
The use of wholesalers is also a cost effective and efficient tool that can be used to reach large and diverse numbers of consumers. They should have a national presence, value the product and enjoy a healthy relationship with customers in order to build the products image. Monitoring of product pricing should also be done to ensure competitiveness and avoid customer's exploitation. They will be involved in ordering for products in advance in anticipated shortages in the market. Provision of transportation of the products from the manufacturer to the retailers, perform sale promotions and advertising. They will also be entitled to keep manufacturer updated on customer trends and to help in fixation of final product price. (marketing., 2009)
Retailers both small scale and large scale will be used to ultimately avail the goods to the consumers. These will help to expand market of the goods to remote places and enhance easy accessibility of the products. They will help to create and maintain permanent relationships with the consumers and to fix the ultimate product price. They form a vital link between the consumers, wholesalers and manufacturers. The break down of the goods into small saleable units and provision of selling outlets, giving feedback from consumers to manufacturers are their main functions.
It will also be of importance to employ direct sales agents to ensure proper direct trade of products to buyers and to help strengthen the image of the firm. Also direct sales will help the firm know the desires of the customers, to build personal relationships with consumers and enhance higher sales due to convincing. (Lawrence & Carl, 2009)
Vertical and upward communication channels will be used between various levels in the distribution hierarchy. The free flow of information will enhance the appropriate reactions between the buyers and manufacturers. The internet will be used to avail information directly to the users on product usage. The intergrated supply chain model with bi-directional arrow to enable the flow of information back and forth in the channels. All information on production, distribution, new products and change in product compositions will be computerized, stored and updated regularly. Multi participant exchange node where a network is developed to share information with the lower levels in the distribution channel will be used. The adoption of new software technologies e.g. Base Rate, Carrier select & match pay to compare the various transportation rates and Logitility planning solution tool to maintain and manage the whole supply chain will be used. Electronic data interchange, a method of computer to computer transfer of information in the supply chain will be used to communicate between the various levels of management e.g. the production and marketing departments. Since the EDI method gives better and faster customer service through quick response to issues that may be raised. Reduced paper work leads to cost efficiency and faster process of information hence competitive advantage. The distortions leading to inaccuracies in the supply chain are significantly reduced as it encourages real time information processing and feedback. A bar code scanner will be used to specify product names and their production dates. A data warehouse will be used to back up data for reference.
Inventory which is the specification of the produced goods in terms of quantity, quality and size will be done in order to maintain continues supply of goods to consumers. Various systems will be availed to identify deficits in stocks, set targets and to report the progress of products through out the supply chain. All materials used in production will be monitored using CCTV, ABC analysis, cycle counter support and lot tracking. Stock keeping units will be used to monitor the product purchase in the wholesale and retail outlets. New old stock system will also be used to cater for old stock that has not been used leading to promotions as a way of disposal. The inventory will be sub divided into raw materials, work in process, finished goods and goods ready for sale.
The transportation of the products will be done mainly by the wholesalers and at times distributed to the wholesaler by a contracted logistics firm e.g. con-way. This will be done to reduce on the transportation costs e.g. purchase of trucks and hiring of drivers. The production plant will comprise of a well equipped warehouse using the KIMATRA VMS system to enhance accuracy in productivity and inventory in warehouse units. The ease of use and high rate of use favors the system as it indicates where the products are available and also ensures the timely delivery of goods.  This will improve planning and management of the distribution of goods from the warehouse to the end consumer. (Mishra, 2004) (Lawrence & Carl, 2009)
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Article Source: http://www.articlesbase.com/marketing-tips-articles/distribution-channel-4257069.html
About the Author

Henry Ford is a senior editor at http://www.topmarkessays.com. He has more than 10 years experience in freelance writing. He will assist you with custom political essays, custom research papers, custom dissertations, book and movie reviews, literature papers, Spanish essays, and many more.

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