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Not all channels will therefore be equally effective for all businesses. Distribution may for example occur by means of intermediaries, as in the case of Xerox above, or directly from the business itself, which also occurs at Xerox in some cases.
On-site, direct sales usually occurs when small businesses are established, and the product or service is sold directly to the customer from the premises of the business. The target consumers are then also located within the immediate vicinity of the business. When target consumers find themselves in a wider geographical area, direct mail is another channel that can be followed. Particular customers are targeted by means of flyers, brochures, etc. In order to sell the product. Orders can then be made via mail. A drawback of this distribution channel is that, while less costly than many other ways of advertising, it may damage the image of the company when poorly targeted.
When a business is huge, like Xerox, it is best to seek partners or other intermediaries for the purpose of product distribution. These intermediaries have to be chosen with great care, in order to provide the best benefit for the business involved. In this, Xerox appeared to have made a wise decision, by choosing an existing and trusted partner. The partner in turn has chosen an implicitly trusted distributor, thereby providing Xerox with the...
Telemarketing and the Internet as useful tools to reach wider audiences when a business begins to grow and the customer base becomes larger. The Internet is especially useful, as it reaches wider audiences, and purchasing is made simpler by means of this.
Agents, wholesalers and retailers are then mostly used by the larger businesses, such as Xerox. Agents can also be extremely useful in product or service distribution. These can be appointed in any location to distribute the product or service involved. When a business begins to expand beyond the borders of a city or specific region, agents can help with the growth of the company, after which the next step is wholesalers and retailers.
Not all businesses will expand beyond a certain margin of growth. It has to be kept in mind that for certain business a limited number of distribution channels is most beneficial. The way in which these channels is used is also vitally important for the particular venture. Currently, technologies such as the Internet make it easier for businesses to grow with the least amount of capital. Distribution channels should then be researched and used with care and wisdom in order to provide the business owner with the maximum benefit.
The imminent matter of concerns to be sorted out by the manufacturer includes, Selection of a retailer or distributor having good and strong public relations. Cater for logistics, shipment issues when the retailer network expands / Time dilation. Mere incentives offered by the retailers as compare to Super Market Giants. The public and market repute of the retailer has to be thoroughly reviewed. The standards of the products aren't solely derived from its
Dog Food Company Overview of the Company Meow, Bark and Everything Else is an all-natural pet food company. The company has several lines of pet foods, created from local ingredients, starting with cats and dogs, and hopefully expanding to other types of pets as well. The products will be sold locally through a couple of different distribution channels. This presentation will focus on what those channels look like. Distribution Channels We intend to
Amazon represents one of the modern success stories that is similar to other stories such as Microsoft and Apple in many ways. For example, the company originally started in a garage with a limited budget. The company's founder, Jeff Bezos, focused more on the potential for new distribution channels to be built rather than any specific product. Books were only one of the products on a long list of products
Channel Management B2B marketing In mid-1980's, the PPCo's vice president studied how to deal with the ever-increasing "gray market" for their hard drives. He held a meeting with managers to evaluate and resolve the problem. This report documents a good case study of how gray market developed in the disk industry. It dwells on the pricing policies, management of sales force and strategies of distribution. The main issues PPCo disk drive
The hotel seeks to promote its strategic location and incomparable services to boost its sales to the majority of people and tourists visiting Southern California. Its proximity to central Loss Angeles also gives an advantage to the hotel to target the urban dwellers seeking recreation facilities outside the central city. Marketing programs Pricing of services and products offered by the Long beach hotel is under management and control of market conditions
Office Depot started its operation five years after Staples. The company has aligned its business strategy to target increasing its market share through business policies similar to those undertaken by Staples Inc. The company is locally owned and faces difficulties in capital expansion to be able to roll more distribution outlets similar to Staples. This has incapacitated the company in acquiring economic of scale in operation. The company currently