Discussion questions for academic study

¶ … Purchasing

Whenever one purchases a particular product or service, the purchase experience depends on several variables, such as the nature of the item bought or the nature of the distribution channel used by the vendor. A growingly popular distribution channel is constituted by the virtual community, through which companies sell their items on websites. This experience is impersonal and highly technological. The completion of the purchase process depends on the technical skills of the user. Yet, it does reveal the advantage of removing geographical and time barriers, as well as avoiding crowdedness (Groshan, 2006). These advantages are not common within the physical retail stores of neither manufacturer nor vendor. The major difference between these two channels is that of the retail price being lower in the manufacturer's store and higher in the intermediary's store. Additionally, the manufacturer's store would often be located in less easily accessible areas. Finally, when purchasing from a catalog, the experience is less personal as no human interaction occurs. Additionally, like the website, the catalog does not offer the customer the ability to observe the product, but it does offer the advantages of reduced barriers and crowdedness.

Discussion Question 2: The Channel Strategy in the Marketing Mix

The marketing mix is composed from the four Ps of marketing -- product, price, promotions and place, with place being understood as distribution. In terms of products, the strategic elements of decision include the branding of the product, packaging, product styling and functionality, warranties, complementary services and so on. The price decisions include elements such as the pricing strategy to be implemented, the usage of seasonal pricing or of discount pricing, the flexibility of the price or the product's retail; price. The promotion decisions traditionally include strategic elements such as the media channels onto which the product or service would be promoted, the actual advertising campaign and its particularities so that it attracts the targeted segment, the development of the marketing budgets, the relations with the public and so on. At a more comprehensive level, the distribution strategies include:

"Distribution channels

Market coverage (inclusive, selective, or exclusive distribution)

Specific channel members

Inventory management

Warehousing

Distribution centers

Order processing

Transportation

Reverse logistics" (Net MBA, 2007).

Discussion Question 3: Importance of Distribution Strategies

The distribution strategies are a pivotal component of business success. Within the specialized literature, the academicians forward a series of models which are argued to guarantee organizational success. Yet, these models should be viewed in a broader means and implemented at a narrower level. In other words, each organizational leader should recognize that his business is characterized by elements of uniqueness, such as the type of products he sells or the industry in which he operates. This consequently means that he has to adapt the theoretical models to his particular features. The distribution strategy constitutes a means in which the theoretical business model is adjusted to fit the specific needs of the company and as such ensure its long-term sustainable success.

To better understand, the specialized literature presents the reader with a series of distribution strategies, such as online retailing, direct distribution or indirect distribution. If the manager makes his strategic decision based on the theoretical finding that direct distribution generates more sales revenues to the manufacturer (Tutor2U), he might overlook his organizational particularity, such as the location outside the city, which would raise barriers and reduce the positive impact of the direct strategy. In other words, selection of the adequate the distribution strategies play a key role in the achievement of organizational goals.

Discussion Question 4: Cardon Carpet Mills

Based on the particularities of the Cardon Carpet Mills and the industry in which it operates, the recommendation would be that of implementing a direct distribution strategy through which they would directly interact with the customers. Also, the customer satisfaction would increase due to the fact that direct distribution is more convenient for them (Tapp, 2005). At this stage, the flooring industry is highly dynamic and competitive and the implementation of the direct distribution strategy would allow it to strengthen its competitive position.