Discussion Regarding Distribution Channels, Push & Pull Strategies and Marketing
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Please address the following questions:
1.What is a distribution channel? What is the relationship between channels of distribution and logistics? How does geographical location affect your selection of distribution channels?
2. What are the similarities and differences between promotional push strategies and promotional pull strategies? What is an example of a situation in which an organization would use a push strategy? What is an example of a situation in which an organization would use a pull strategy?
3. What does the term "noise" mean in marketing? With so much advertising "noise" in the marketplace, how can a company ensure its message is heard?
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1.What is a distribution channel?
Distribution channels are the roads a product travels from manufacturing to consumer. "Distribution (also known as the place variable in the marketing mix, or the 4 Ps) involves getting the product from the manufacturer to the ultimate consumer. Distribution is often a much underestimated factor in marketing. Many marketers fall for the trap that if you make a better product, consumers will buy it. The problem is that retailers may not be willing to devote shelf-space to new products. Retailers would often rather use that shelf-space for existing products have that proven records of selling" (USC Marshall 2009).
Reference Link - http://www.consumerpsychologist.com/intro_Distribution.html
Some products can be purchased directly from the manufacturer, such as a Dell Computer; while other products must be purchased through a distributor, such as a new car purchase. The channel used by the manufacturer, will influence the price for the consumer. The more middlemen involved, generally the higher the price, as many "in the middle" are compensated.
What is the relationship between channels of distribution and logistics?
The relationship is closed. How can a product be distributed if there is no logistical plan? It simply cannot. To properly use the logistical factor, the manufacturer and marketer must decide on the best channel for the product or products. The leader of channels of distribution and logistics is Wal-Mart.
"Some very large retail chains such as Wal-Mart may be able to handle distribution more effectively than outside wholesalers. Wal-Mart often insists on sales directly to the chain from the manufacturer rather than sales through wholesalers. This is the ...
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