Marketing Strategy: Distribution Channel

Marketing Strategy: Distribution Channel

            The most crucial concept in the production of goods and services is the identification of potential customers.The idea of distribution channels highlights means by which a producer can create an interlink between him and the final consumer. Generally, once production is done, the next criticalchallenge is the identification of the distribution channel. The choice of the delivery channel depends on the product, market, availability of intermediaries, size of the firm, and competition levels in the market. The essay will evaluate the directchannel distribution structureas a means of ensuring success in marketing strategy.

The rationale for the Direct channel distribution structure

In an attempt to determine the mode of marketing strategy, the producer must evaluate the necessity in terms of cost implications to the final consumer. The direct distribution channel eliminates the effect of intermediaries on the costs. Therefore, it gives the producer a competitive advantage over its competitors in the same marketing environment. Direct Marketing is preferably used as a tool for improvising business functioning since it helps in generating new business ideas due to interactions with final consumers. There is always a direct flow of information from consumers to producerscompared to agent selling (Yi et al.,2018). This helps in creating an enabling environment for improving product features. The critical concept of direct distribution relates to understanding the market base in terms of identifying dormant customers. It only through this channel structure that a producer can identify potential customers while retaining the existing customer base. Gauging customer’s interests and overcoming producer objectives requires direct interaction with the final consumers. This mode of distributionis entirely focused on ensuring proper planning as well as acquiring adequate information to enable the producer to achieve marketingobjectives. It further provides that manufacturers’ investment efforts don’t end up in the bin.

In an effort to promote the final product to ultimate consumers, the application of push promotional strategy with the aim of ensuring that consumers became aware of the brand at the point of purchase is essential. The close interaction with channel members, for instance, distributors, marketers, retailers, and wholesalers, enable a producer to first-hand information in regard to the product performance. The direct channel is appropriate, especially in a competitive market entryenvironment (Sriram, 2016). Educating the channel members on the product specifications as well as improving customer relations techniques may eventually increase the customer base. Consistent product branding, depending on its performance, will assist marketers in maintaining a large customer base. Motivations for channel members will eventually improve performance in comparison to competitors in the market..

Working with Direct Channel to Promote Product

The manufacturer of a product will entirely depend on the demand levels. If demand is high, production will rise eventually, without incorporating warehousing costs. The product will be warehoused depending on the demand level as well as supply levels. If demand is low, the product will be stored in anticipation of a possible future increase in demand level. Product distribution will focus on customer preferences in terms of demand.

Expectations from Manufacturer

As a marketer, the promotion plan should determine a diversified advertising approach that encirclements integrated marketing communication. This involves an undoubtedly stated message that is continuously communicated to all shareholders. The publicity efforts should illustrate suitable advertising, public relations, sale promotional techniques, and direct selling. Describing primary objectives to your promotional team, by outlining in terms of quantifiable tasks to be accomplished. Illustrating the execution plan under all possible expenditures in the integrated marketing communications budgets. The organizational structure will be based on divisional arrangements. In this structure, corporation groups employees into different teams based on the products to meet specific customer needs. Specialization and division of labor in this structure ensure employees making comparable products can achieve betterefficacy.

Selection of Sale force team

The selection of sales personnel should be based on the competitive recruitment process. This includes job advertisements through social media or recruitment firms. The idea of engaging professional recruiters is mainly tailored to produce the best candidate. Compensation for sales personnel should be commission based. Remunerations strategies should create advantages for both the candidate and thecompany. In this context, direct sales structure will embrace hiring support sales staff, especially when the company increases its customer base. The incorporation of other channel members should be done in a relationship with the customer’s demands and locations. Frequent online advertisements can increase customer base, which can be done by incorporating different promotion channels(Beritelli& Schegg, 2016).  Management of the sale staffs depends on the customer base. In this context,sales teams should be result oriented. This can only be achieved by creating realistic goals and making learning a priority to the sales team.

Physical facility and delivery of service

Service delivery is intangible; it doesn’t require intermediaries. There is always a direct relationship between the service provider and the final consumer. Given the immateriality of the services, promotion becomes a specificchallenge yetavitaltask. When buying a service, customers usually perceive the risks related to the purchase. The intangibility of services makes it challenging to evaluate its riskiness. To ensure quality service delivery, providers can inspire confidence in the facility by providing a cleanfacility that customers can see. This navigates the intangibility nature of the services delivery. Due to the intangibility nature of services, consumers are less likely to switch brands or try something new. To change the aspect of intangibility to tangibility, dealerscan control the service offering to distinguishthemselves. It is the eminence of the service, not the real product.For instance, having a well-mannered and welcoming staff can differentiate the quality services from non-quality ones. Due to homogeneousness in the product offerings, especially in the competitive environment, the results mattera lot. Forexample, in a two fast-food chain serving a similar product (tea and coffee), it is the superiority of service which determines the customer preferences.

As a marketer and service provider, I will focus more on ensuring quality staff, which mayeventually lead to better service delivery—conducting frequent market research to come with a competitive strategy for boosting customer loyalty. This concept will change the aspect of the intangibility of service delivery to a tangible product. It’s the responsibility of the manufacturer to maintain customer loyalty while improving the customer base. The quality of goods and services offered in markets creates a differentiation amongst differentcompetitors. The nature of the product line and product mix can determine the extent of success in the market dimensions.

Reference

Beritelli, P., & Schegg, R. (2016). Maximizing online bookings through a multi-channel-strategy. International Journal of Contemporary Hospitality Management.

Sriram, C. R. (2016). Competitive landscaping and market entry strategy.

Yi, Z., Wang, Y., Liu, Y., & Chen, Y. J. (2018). The impact of consumer fairness seeking on distribution channel selection: direct selling vs. agent selling. Production and Operations Management, 27(6), 1148-1167.