The Marketing Mix: Distribution Channels - Essay Example

Some of the most important things that are considered are: The customers are always first, and the whole point of designing an effective distribution channel is to design one around the customer’s needs. The first step in doing so is identifying what the customer would like and what would be most convenient for him/her. The consumer need is effected by the nature of the product that is being sold; hence manufacturers need to thoroughly understand their targeted market to decide in which setting the consumer might want to buy the products.

Another important factor in making distribution channel decisions is to find the right intermediary. For start-up businesses, lining up marketing intermediaries with great credibility is always difficult. For manufacturers selling products worth hundreds of thousands of Dollars, it is crucial to form alliances with dealers/sellers who have a suitably good standing in the market and have a good growth record. At the start of setting up a business, manufacturers tend to refrain from branching out into complex distribution strategies and typically use a few intermediaries.

The decision is usually based around the nature of the product that is being sold and the needs of the targeted market. For instance, firms manufacturing day to day household products employ intensive distribution, and stock their products with as many retailers as possible. Similarly, expensive and products targeted towards the high-end of the market are usually sold through exclusive distributions. The people at Terrafugia insist that theirs is a “car that can fly”, and it is indeed an idea that can revolutionize the automobile industry.

The transition is a sleek sporty looking airplane that has wings that are foldable and in less than 30 seconds it can be transformed into a car that can give road mileage equal to a Honda Civic in city