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Distribution Channels and Strategies - Research Paper Example

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Distribution Channels and Strategies

Logistics manage and govern various supply functions. Several activities form a part of logistics such as material handling and warehousing, inventory management, fleet and transportation management and hosts of other activities. Logistics bottleneck at any point may affect and strangulate the free movement of goods and in this sense, efficient and workable logistics is critical and necessary to keep distribution channel flooded with the goods so as to service consumer on time. Geographic location and area of coverage does affect the selection of distribution channels. Smaller the territory, fewer members in channel distribution can serve the purpose; however, as territory goes larger and distances increase, it becomes necessary to have more intermediate channel members for the efficient flow of goods. This also depends upon the nature of product that how fast the product is being consumed or whether it is perishable kind. The distribution channel would need more channel members along with proper logistics if the goods are fast moving and needs to be replenished in shorter duration so that channel does not go dry ever. Answer 2 There are two kinds of promotional strategies in marketing management and they are known as push and pull kinds of strategies to enhance sales of product or services. Push strategy uses very little or no advertising to get the products in the hands of consumer. In a push strategy, the company deploys their sales force and myriads of trade promotional means and ways to create demand for its product. Trade shows are most suitable places to push the product to the buyer. Push strategy is good when product is new and does not enjoy any brand loyalty; the market is flooded with many substitute products. Push strategy is also good when impulsive and unplanned buying is quite prevalent in the given product category. Push strategy also works well when consumer is well aware about the product. Dish washing detergents and other low-value products are good examples of push strategy. A push strategy is employed to sell the products or services directly to the customers bypassing entire distribution channel. Accordingly, push strategy is very well used in selling insurance products too. The characteristic of pull strategy is that it is directed toward consumers using a lot of promotional efforts such as coupons, free samples, and contests. In fact, pull strategy relies on high spending on advertisement and promotional means to create high consumer demand. Pull strategy works best when it is possible to differentiate the product with high brand loyalty in the chosen field. Usually, consumer involvement is also high in this category of products. The best example that can be given for pull strategy is the marketing efforts put by Proctor & Gamble in the marketing of personal care products such as creams, shampoos, lotions, sanitary napkins by providing free samples and coupons. Answer 3 ‘Noise’ can be defined as when too many advertising messages arrive in the market place regarding a product confusing the buyers to make their buying decisions. Consumers terminate these messages as 'noise' because they do not get any reliable and meaningful information necessary for their buying decisions. It is important to identify the situation that what is being conveyed in the marketplace and how seriously consumers take these messages. Any further messaging in the similar line will not evolve any favorable results ...Show more

Summary

Answer 1 Goods reach in the hands of consumers through well defined intermediaries such as stockiest, wholesalers, semi wholesalers, retailers depending upon the nature of product. They all are parts of a distribution channel helping goods reach to the consumers…
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