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Marketing Strategy Questions

A distribution channel is a set of actions and decisions, as well as physical facilities that facilitate the delivery of the goods from manufacturer to consumer. Distribution channels are integrally linked to logistics; logistics is responsible for the creation and maintenance of effective relations between various participants of a distribution channel. Geographic factors heavily impact the design and cost-effectiveness of different distribution channels.

Advertising is the essential component of food product marketing success: as a result of successful advertising, manufacturers gradually expand production volumes and their presence in consumer markets. Marketing Strategy Questions 1. A distribution channel is “path or pipeline through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them flow in the opposite direction (from consumer to the vendor)” (Baker, 2001).

In other words, a distribution channel is a set of actions and decisions, as well as physical facilities that facilitate the delivery of the goods from manufacturer to consumer. A distribution channel is not necessarily long and complex; distribution channels are characterized by a variety of interconnections and interdependencies. As a result, a distribution channel may either be short and deliver the goods directly to consumers, or may imply

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the need for several intermediaries (e. g. , wholesalers, agents, etc), who are also responsible for maintaining the stability of the distribution channel’s performance.

Where intermediaries are involved in distribution, the buyers usually have to pay a higher price for the product: “each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer” (Baker, 2001). Distribution channels are integrally linked to logistics; logistics is responsible for the creation and maintenance of effective relations between various participants of a distribution channel. Effective logistics promotes smooth and cost-effective delivery of the goods from the manufacturer to consumers.

As a result, logistics is equally responsible for the formation of the most effective and the most reliable distribution channels. Distribution channels and logistics should be developed simultaneously with designing and marketing the product. Geographic factors heavily impact the design and cost-effectiveness of different distribution channels. “For many organizations, the channels of distribution should be treated as another customer, with needs and satisfaction levels” (Cowley & Domb, 1997).

Planning is the essential component of geographical distribution planning: in different geographic areas, different distribution channels will work differently. The effectiveness of distribution channels depends on the quality of physical facilities (e. g. roads), the cost of delivery and distribution, and the speed with which products are expected to reach the consumer. For me, geographical factors determine the choice of the most appropriate distribution channels and imply the need for the ongoing management as a part of successful intervention into new geographical markets.

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