Marketing Management Distribution Strategies

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The response addresses the queries posted in 2375 words with references.

//In distribution strategies, intermediaries play significant role. A Number of intermediaries determine different distribution strategies. In this context, firstly we will discuss general introduction on distribution strategies and intermediaries. Moving to the main question, further we will discuss three distribution strategies based on the number of intermediaries involved in each of them. //

Distribution strategies and intermediaries:

The process where a firm decides, how to transfer its products to the intermediaries and ultimately to consumers is known as distribution strategy. Intermediaries are the people or the group of people who make the product available to the population (Dent, 2011). The distribution management is an important aspect of every manufacturing firm without which a company can bear heavy losses and waste of expensive raw material. It comes under one of the business strategy of the big firms that how the distribution should be carried on in order to make the product reach to the ultimate consumers or its intended market timely and safely. Intermediaries play an important role in company's product distribution channel. For example, merchants are intermediaries that buy and sell products. The generally included three categories of intermediaries are:

Agents: the individuals or the companies that plays a role of extension of the manufacturing company are known as agents. They act as a mediator between producer and the final consumer in selling a product. Although, they do not own the product directly, they take the possession of the product in the process of distribution of the product or service. By doing these tasks they, make their profits by charging commissions or fees.

Wholesalers: they play a different role then agents in terms of possession of goods. They owned the products that they sale. Their main task is to buy the product in bulk, store them and sell them in the prices much higher then they bought. They rarely sell to the ultimate consumers, but to the intermediaries like shopkeepers, retailers etc. unlike agents they do not charge commission as they have their own separate entity.

Retailers: retailers lie in various categories having different shapes and sizes. They vary form a lower level grocery shop to large and established chains like Wal -Mart and target. Retailers are the ones who come directly in touch with the consumers. At whatever level they lie, they have a similar task of performing, i.e. purchasing the products from intermediaries discussed above and then selling them to the ultimate consumers. They are the retailers who deal with the customers directly.

The above explained intermediaries are interconnected to each other and thus there is a smooth chain pattern which deals right from manufacturing till distribution and finally profit generation. If even one of the steps is improperly implemented, then there might be chaos and confusion in receiving the goods on time, which ultimately leads to the breakage of bond between all the intermediaries associated with each other.

//Product specialization and market specialization are two distinct marketing strategies followed by marketers in different situations. Product specialization mainly focuses on the product development and improvement, while; market specialization looks after emerging demand of the market and changing customer's preferences. In context to these topics, this section will explain both the concepts in detail to signify their implication in the field of marketing.//

Product specialization and market specialization:

Product is said to be specialized when by the company has availability of market product created by them. The company then divides the market into various segments of its potential customers and provides various ranges of its products to different customers having different potential. Product ...