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A Marketing Strategy

1. It has been said that "Channels of Distribution may be the best opportunity for a sustained competitive advantage." Do you agree or disagree? Why?
Please compare the Channels of Distribution (Place) to Product, Price, and Promotion in terms of its importance within the Marketing Mix (Four P's).

2. Suppose your company is the Outofsight Speaker Company, a manufacturer of a high quality line of audio speaker systems in Philadelphia, PA. Your company has been in existence for four years, and sales have gradually been increasing at approximately 8% annually. Your speakers range in price from $400 to $3,200 per pair. Although this is expense comparatively, Consumer Reports magazine rates them highly. Your VP of channel relations has asked you to qualify a potential new distributor for your electronic products. That distributor is Washburn Electronics in Paducah, Kentucky. Your company had received a letter of inquiry from Washburn, in which they expressed interest in becoming your qualified Outofsight wholesale distributor in Kentucky. In effect, you are considering Washburn Electronics as a new Outofsight wholesale distributor to represent your products to appropriate retailers in the state of Kentucky. At this time, you do not have an authorized wholesaler that is physically located in Kentucky and your three primary competitors do. Washburn also represents two of those three lines of competing speakers. Because you have no wholesale distributors located directly in Kentucky, the visibility of your product line is lower than you would like. Washburn Electronics is a wholesale electronics distributor and sells a variety of electronic goods to retail stores, most of which are independent stores. Those stores compete with Tweeter and other stores that sell high quality speakers and audio systems. Thus, we have a business-to-business channel that includes merchant intermediaries. Since its creation four years ago, Outofsight speakers have been represented in Kentucky by two authorized wholesalers from the neighboring states of Indiana and Tennessee, both of which have done a more than adequate job of representing the quality Outofsight line.

Answer the following question:
- Assume you have a meeting arranged with Washburn Electronics senior management. At that meeting, you may ask their senior managers any question that you wish.
- What questions would you want to ask? What are the things you would want to know about Washburn Electronics that would help you make the "correct" decision about whether or not to recommend bringing them aboard as a potential distributor of Outofsight?

Solution Preview

- It has been said that "Channels of Distribution may be the best opportunity for a sustained competitive advantage." Do you agree or disagree? Why? Please compare the Channels of Distribution (Place) to Product, Price, and Promotion in terms of its importance within the Marketing Mix (Four P's).

The channels of distribution entail the variety of intermediaries that work together in getting a product or service from the manufacturer to the consumer. In doing so, the channels of distribution provide the key components to strengthen the company's overall marketing channels to effectively relay the brand's message. The marketing channels provide means to "place" the product within the accessibility for the consumer to purchase and communicate the brand's message to their friends or family. The price is in regards to highlighting the beneficial deal of affordability to the targeted demographic audience through marketing channels. While the promotion is an ongoing concept - that outlines the beneficial aspects for encouraging a way that consumers will react by purchasing the product.

Try and decipher the aim in understanding how the channels of distribution correlate to the best opportunity for sustaining competitive advantage is in the marketing mix. By asserting the beneficial aspects to promoting a product or service, the marketing mix assures all four areas are covered to facilitate the strongest positive impact (consumers willing to ...

Solution Summary

A marketing strategy for channels of distributions. The expert compares the channels of distribution to product, price and promotion in terms of its importance within the marketing mix are given.

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