A SYNOPSIS OF CHAPTER 10
After reviewing chapter 10 from the textbook on marketing concepts, I was able to understand different aspects of marketing like the importance of having marketing intermediaries, how to classify them and their various functions, different distribution channels and how to select and manage those channels, wholesale and retailing. All the above are business distribution strategies that can be applied in the marketing of products (Peter & Donnelly, 2019). To start with, marketing intermediaries are essential for any business because this is the only way a company can spread the products to its customers after manufacturing. The marketing intermediaries can be made of a chain of wholesalers, retailers, brokers, or even facilitating agents, among others. Intermediaries are good at providing information on how the products are performing in the market. They also become the link to the customers, and hence they can match products to the right targeted consumers.
Furthermore, we have several distribution channels, and we must know how to select the right ones so that customer needs can be met. There is a need to understand what different customers want, what specific characteristics of products they like, who are the company competitors, what are the environmental considerations, and the company’s capabilities (Peter & Donnelly, 2019). These considerations help the company to know which channel to use for the distribution of products. All the distribution channels need to be put in control, and the degree of control should be well defined. All distribution costs should be kept low to maximize the profits and other needs of the manufacturing company and other channels involved.
The other aspect is the management of these channels of distribution. There should be an establishment of a marketing relationship that focuses on establishing long term relationships with target customers, suppliers, and all distributors (Peter & Donnelly, 2019). It there is this good relationship, there will be good feedback that will enable manufacturers to continue producing quality products and cut their costs of production. Several marketing systems can be used, including vertical marketing, where members depend on one another and end up making and creating a good working relationship that leads to efficiency and effectiveness.
The last concept is a wholesaling, store, and non-store retailing. Wholesalers tend to buy products in bulk and then distribute them to retailers who, in turn, make sure that they reach the target customers. These wholesalers need to find ways to attract retailers to purchase their products (Peter & Donnelly, 2019). For instance, they can offer free transportation and provide after-sale services. On the other side, we have different types of retailers varying from store and non-store. Store retailing is where products are at a fixed location, for example, hypermarkets. Non-store retailing can involve direct selling where is no physical store to go and obtain the product.
The only marketing concepts that I find unclear is online retailing. How do manufacturers coordinate with their distribution channels and ensure that everything is working well? Does online retailing have more advantages or disadvantages to marketers? What are some barriers to online marketing?