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Hybrid Channel Distribution Programming

1. Explain the concept of a hybrid channel distribution system. Provide an example.

2. The most advanced supply-distributor arrangements for administering VMS's involve distribution programming. Explain the components of distribution programming.

3. A decade ago, the advertising-to-sales promotion ratio was about 60:40. Today, in many consumer-packaged-goods companies sales promotion accounts for 75 percent of the combined budget. Several factors contribute to this rapid growth. List and explain these factors.

4. The extraordinary growth of direct marketing can be attributed to many factors with both consumers and business are benefiting List some of the factor that are contributing to the growth of direct marketing. Provide examples.

Solution Preview

1. A hybrid distribution system is one where a company uses different delivery mechanisms or channels in an attempt at reaching more consumers. An example of a company that uses such a system is Coca Cola. The company sells wholesale through grocery store outlets and restaurants, but also fills its own vending machines selling directly to consumers. Krispy Kreme Donuts is another example. They sell directly from their retail stores and through grocery stores.

2. The first portion of distribution programming involves planning. Once the firms involved have reached an accord (a contract for example), they must plan how to best to operate their plan. This typically involves sharing records and information in an attempt to understand how best to utilize resources.

The next step is implementation. A system is built ...

Solution Summary

The solution explains a hybrid channel distribution system, components of distribution programming, factors that led to contributed to phenomenal growth in advertising to sales ratio, and factors that led to the growth of direct marketing. 519 words.