Equine Students-Distribution

The final 'P' of the product marketing mix is distributin (Place). So why do we need intermediaries?

• For distributing information to other intermediaries and to final customer
• For promoting
• Contacts
• Matching
• Negotiating
• Physical distribution
• Financing

There can be a number of channels in a distribution chain.  For example Channel 1-Manufacturer sells directly to the consumer.  Channel 2 contains one intermediary, Channel 3 contains two intermediaries and Channel 4 contains three intermediaries.  The more channels in a distribution chain the more expensive the product/service may be as each intermediary has to get a share of the profits.

How should a company go about creating a distribution strategy?
There are a number of elements that need to be considered when devising a disribution strategy.  These are:

1. Channel Selection-market factors, producer factors, product factors, competitive factors
2. Distribution intensity-intensive, selective and exclusive
3. Channel integration-Conventional marketing channels, franchising, and channel ownership

When deciding on what partners to have in the distribution channel, the company also have to consider the possibility of conflict.  If conflict occurs how should a company deal with it?

Integrated Marketing Communications

What is marketing communications?  This is a concept of marketing communications planning that recognises the added value of a comprehensive plan (Kotler and Kelleher, 2009) The plan should be clear, consistent and maximum impact through seamless integration of messages.


It is essential that the company is aware of how the customers/consumer receieves and interprets the messages that a company sends.  It is essential to promote feedback to ensure that the consumer/customer full understands the message.


There are a number of key promotional tools that a company could use:

1. Advertising
2. Sales Promotion
3. Sponsorship
4. Public Relations
5. Personal Selling
6. Internet Marketing
7. Direct Marketing

When a company is devising a intergrated communications strategy it is essential that they address the following steps:

1. Identify the target audience
2. Determine objectives
3. Design communications
4. Select channels
5. Establish a budget
6. Decide on the media mix
7. Measure results
8. Manage integrated marketing communications

Marketing Research-Ethics

The researcher has a number of obligations to participants.  These include issues  such as:

• Invasion of privacy
• Deceptive practices
• Impositions

The researcher also has obligations towards their clients.  The client's identity and their information should be held in the highest of confidence.

Clients also have  a duty towards their researchers.  There are certain issues that need to be considered:

1. Clients picking the brains of their researchers
2. Close bidding situations
3. Research not fully authorised
4. Regening on promises
5. Excessive requests
6. Improper use of research results

Researchers also have obligations towards society.  For example,  the researcher needs to carefully think about their topics of research, the research technique used and the nature of the presentation.

Business admin-Services Marketing

Services marketing varies from product market because services have the following characteristics:

• Lack of ownership
• Perishability
• Heterogenteity
• Inseparability
• Intangibility

There are also three extra P's in terms of the marketing mix

People-who delivers the service.  Are they professionals or do they need special qualifications?
Process-how is the service delivered?  Is it a service that is based on speed-i.e. fast food?  Or is it a service that requires the company to take their time in delivering the service?
Physical Evidence-how importance is physical evidence?  For example in a restaurant-how clean are the tables, tableclothes, cutlery, staff uniforms etc.  For other service based organisations,  atmosphere is very important in attracting customers into the premises.

Business Administration-Distribution

Distribution
This is the last of the four P's of the marketing mix. 

Logistics is a planning approach that treats moving goods into and

out of an organisation as a complete system; from the stage of

goods and services coming into the organisation as manufacturing

inputs, through to delivery of the organisation’s own goods and

services to the end user. 

 

Factors that should be considered before a distribution channel is

chosen

1.Adequate and appropriate distribution.  A choice of

distribution channels allows the organisation to consider the

various options and choose one or more  that are best

positioned to achieve results.

2.Access to market and the level of coverage required.

3.Cost effectiveness in both access to market and physical

distribution

4.Reseller effort and competitive representation and

motivation

5.Maximisation of revenue returns from resellers

6.Provision of customer service

 

Distribution channel functions

•A distribution channel moves goods from producers to consumers.  Members of the marketing channel perform many key functions such as:

•Information

• Promotion

•Contact

•Matching

• Negotiation

•Physical distribution

• Financing

•Risk taking

•Communication role

•Service role

• Cost reduction

•Control

•For overseas sellers, channel members often make contact

with buyers and potential buyers and may be involved in

matching supply with demand.

Number of channel levels

The number of intermediary levels indicates the length of a

channel.

 

•Channel 1-this is called direct marketing channel.

•This has no intermediary level

•It consists of the manufacturer selling directly to consumers.

•E.g. dell computer sells personal computers by mail order rather than through dealers or retailers.

•The remaining channels are called indirect marketing channels

• Channel 2

•This contains one intermediary level.

•In consumer markets this is usually the retailer

•For example the markers of televisions and cameras sell their

goods directly to large retailers which then sell the goods to

final consumers.

 

Channel 3

This channel contains two intermediaries usually a wholesaler

and a retailer.  This channel is often used by manufacturers of

food, drugs etc. 

•Channel 4

•This contains three intermediaries.

 

Channel behaviour and organisation

•A channel comprises of a group of companies that

distribute products from manufacturers to the final

consumers. 

 

•Channel design decisions

Customer service needs:

1.Do customers want blanket distribution(convenience goods) or specialist distribution (luxury goods)

2.How important is  speed of delivery

3.Do customers expect a wide range of products

4.How important are add on services

5.The channel designer must weigh up the cost of

delivering the optimal service level against potential

extra sales and then set that against the cost of

providing the service

 

Channel management decisions

Selection of channel members-companies with

successful products and strong brand names can

easily attract quality distribution.  Lesser known

companies have difficulty in getting listings with good

distributors or retailers and sometimes have to make

deal that give high margins to the channel members.