Distribution Channels

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Description

***Please see and follow the attached grading guide closely. Using APA format, please use a heading for each bullet point, and include and introduction and conclusion paragraph. Make sure one reference is the attached article.***

Purpose of Assignment

A well planned distribution channel system is a key component of the marketing mix that helps meet customer demands and achieve company goals. This assignment will analyze the role channels of distribution have in meeting the needs of consumers in both a brick and mortar and online retail setting.

Assignment Steps

Resources: University Library article on distribution channels in marketing that is not more than five years old; Marketing: Ch. 1: pg. 4-10; Ch. 2: pg. 40-46, 54-69; Ch. 15: pg. 408-420; Ch. 16: pg. 438-447; Week 4 video

Scenario: You work for a newly formed sports apparel company and your manager has requested you help the company decide on the best distribution strategy to use for its products. You have begun research on the strategies and methods available by reviewing relevant articles on the topic. Based on your article review, you will decide what strategy(ies) is/are best and explain the reasoning behind your conclusion.

Select an article from the University Library that is less than five years old on the role of distribution channels in marketing.

Compose a 1,050-word article review covering the following:

  • Define what a distribution channel is and discuss why it is important to the marketing process.
  • Discuss the differences between direct and indirect distribution channels.
  • Introduce the article and its author(s) and give a brief summary of its core message(s).
  • Analyze the relationship distribution channels have to maintaining a satisfied target market.
  • Compare and contrast similarities and differences in distribution strategies for online versus brick and mortar businesses. Use examples from a company you admire or your own work life examples to illustrate your points.
  • Recommend distribution strategy(ies) for the company and what reasoning led you to conclude this was the best solution.

Cite a minimum of two peer-reviewed sources with one being the article from the University Library.

Format your paper consistent with APA guidelines.

Unformatted Attachment Preview

Distribution Channel Article Review Grading Guide MKT/421 Version 16 Marketing Copyright Copyright © 2017 by University of Phoenix. All rights reserved. University of Phoenix® is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft®, Windows®, and Windows NT® are registered trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Distribution Channel Article Review Grading Guide MKT/421 Version 6 Edited in accordance with University of Phoenix® editorial standards and practices. 2 Distribution Channel Article Review Grading Guide MKT/421 Version 6 Individual Assignment: Distribution Channel Article Review Purpose of Assignment A well planned distribution channel system is a key component of the marketing mix that helps meet customer demands and achieve company goals. This assignment will analyze the role channels of distribution have in meeting the needs of consumers in both a brick and mortar and online retail setting. Resources Required University Library article on distribution channels in marketing that is not more than ten years old. • • Marketing (textbook): Ch. 1: pg. 4-10; Ch. 2: pg. 40-46, 54-69; Ch. 15: pg. 408-420; Ch. 16: pg. 438-44 Week 4 video Grading Guide Content Selected an article from the University Library that is less than five years old on the role of distribution channels in marketing. Defined what a distribution channel is and discussed why it is important to the marketing process. Discussed the differences between direct and indirect distribution channels. Introduced the article and its author(s) and gave a brief summary of its core message(s). Analyzed the relationship distribution channels have to maintaining a satisfied target market. Compared and contrasted similarities and differences in distribution strategies for online versus brick and mortar businesses. Used examples from a company student admires or student’s own work life examples to illustrate their points. Recommended distribution strategy(ies) for the company and what reasoning led student to conclude this was the best solution. Cited a minimum of two sources with one being the article from the University Library. Met Partially Met Not Met Comments: 3 Distribution Channel Article Review Grading Guide MKT/421 Version 6 Content Met Partially Met Not Met Total Available Total Earned 4 #/4 Partially Met Not Met Total Available Total Earned 1 #/1 5 #/5 Comments: The paper is 1,050 words in length. Writing Guidelines Met Organization The tone is appropriate to the content and assignment. The introduction provides a sufficient background on the topic and previews major points. Paragraph transitions are present, logical, and maintain the flow throughout the paper. The conclusion is logical, flows from the body of the paper, and reviews the major points. Mechanics The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements. Intellectual property is recognized with in-text citations and a reference page. Sentences are complete, clear, and concise. Rules of grammar and usage are followed including spelling and punctuation. Assignment Total Additional comments: # Comments: 4 QUAESTUS MULTIDISCIPLINARY RESEARCH JOURNAL THE OPERATION OF DISTRIBUTION CHANNELS FOR THE MARKETING OF PETROLEUM PRODUCTS Florea VLAD Ciprian PAVEL Abstract: The existence of vertical, horizontal and multiple distribution channels highlights the dynamics that characterize the structure of distribution channels. This enables logistics service providers to design and operate their own distribution network. The supplier of logistics, distribution and marketing services of the petroleum products must define the function of each member of this network regardless of their object of activity. Keywords: price policy, mix of commercial relationships, franchise, channels and distribution strategies. Introduction A distribution channel (also referred to as a marketing channel) is a structure of interdependent business organizations ranging from the point of production of the product to the consumer, through which channel members motivate and communicate with the customers, sell and transport, stores, distributes and secures product service. Functions of the members of the oil and gas distribution network it is represented as follows: Tab.1 NR. NETWORK MEMBERS 1 Initiatives 2 Candidates 3 Supporters 4 Passengers 5 Innovators FUNCTIONS OF NETWORK MEMBERS have full access to sources of supply and special respect within the agent for the marketing of petroleum products aim to expand existing distribution relationships trying to take the place of initiates their access to sources of supply is limited limited access is a disadvantage for them in periods of poor supply are not part of the main network performs operations that other members of the recipe do not normally run serve smaller market segments or distribute smaller quantities of products are not and will not become members of the main network enter and exit the market depending on how business opportunities emerge are real competitors that disturb the network Apply new distribution systems to attract customers to the network can force the network to deeply revise its structure 25 QUAESTUS MULTIDISCIPLINARY RESEARCH JOURNAL No matter how well is designed the own distribution network and succeeds to sell petroleum products, some conflicts at this level are inevitable, simply because the business interests of different members do not always coincide. The mix of trade relations in the distribution of petroleum products The supplier of distribution and sale of petroleum products must establish the rights and obligations of the participants in the distribution network of petroleum products. The main components of the mix of trade relations (price policy, trading conditions, territorial rights and services and mutual obligations) are presented in table 2 in parallel with the rights and obligations of the members of the distribution and marketing network: Components of the commercial mix mix Tab. 2 NR. COMPONENTS OF THE MIX OF COMMERCIAL RELATIONS RIGHTS AND OBLIGATIONS OF NETWORK MEMBERS 1 Pricing policy  obliges the trader to draw up the price list and facility allocation scheme  refers to the terms of payment, delivery and guarantees provided by the trader  the distributor may grant facilities for cash payment of products at a time as close as possible to the moment of purchase  can guarantee the delivery of the appropriate products in terms of quality and price control  distributors from the intermediary's own network want to know where other distributors work  they want exclusivity for the territory in which they operate, regardless of their capacity  must be carefully determined in the case of exclusive distribution and franchise distribution  the intermediary can conclude franchise agreements for stations, support in promotional activities, recording and storing information, training staff  The beneficiaries of the contracts must comply with the intermediary's standards of serviceability, cooperation in new promotional programs, provision of required information and purchase of products. 2 Terms of trade 3 Territorial rights 4 Services and reciprocal obligations Problems in the operation of distribution networks The agent for the marketing of petroleum products can set up his own distribution network for petroleum products, g.p.l loads and complementary products. He hopes to gain the cooperation of members of the network, relying on the fact that it usually contributes to overall profits higher than those 26 QUAESTUS MULTIDISCIPLINARY RESEARCH JOURNAL obtained as a result of the independent action of each member in accordance with his or her own interests. By cooperating, they will understand, serve and better meet the targeted consumer category. Some conflicts at the dealer's own distribution network for the marketing of petroleum products can play a constructive role, leading to faster adaptation to the changing market situation at the same time, their multiplication has a negative effect on the functioning of the network. There is no question of eliminating conflicts, but keeping them under effective control, through a series of methods and techniques, some of which we will present below: Problems in the operation of distribution networks Tab.3 NR. 1 2 3 4 TYPE OF CONFLICT Objectives incompatibility Recognition of the rights and obligations of network members Different perception of economic relations The high degree of dependency of network members EXAMPLE OF CONFLICT  by proposing to rapidly conquer an important position on the market, the main distribution and marketing service provider applies the low pricing policy for g.p.l.  its distributors can opt for a high profits policy that will deliver appropriate short-term results  the main service provider of distribution sells large oil products to customers directly from the warehouse through their own sales force  the same thing tries to do with the members of its network - resellers.  the main distribution and distribution service provider may be optimistic about short-term economic prospects, requiring network members to operate with large stocks  network members may be pessimistic about the same perspectives  product and pricing policies of your primary distribution and marketing service provider may seriously affect the profits of exclusive distributors, such as resellers of cargo g.p.l. from other counties CONFLICT CONTROL AND CONFLICT METHODS Harmonization of objectives Cooperation Diplomacy Mediation Arbitration We consider that it is up to the suppliers of distribution and sale of petroleum products to determine the rights and obligations of the participants in the distribution network of petroleum products, The main components being price policy, trading conditions, territorial rights as well as the reciprocal services and obligations these networks have. On the other hand, it is also worth 27 QUAESTUS MULTIDISCIPLINARY RESEARCH JOURNAL mentioning that at the level of the distribution networks some problems can arise, some with constructive effects on the functioning of the network and others with negative effects, characteristic being in this sense: the incompatibility of objectives, the recognition of the rights and obligations of network members, the different perception of economic relations and the high degree of dependency of network members. Designing the distribution network for petroleum products The distribution system of a producer of petroleum products is therefore only the result of the possibilities and conditions existing at the local level. Designing a distribution system requires: • Consumer needs analysis, • Establish distribution objectives, • Identification of the main distribution strategies, • Evaluation of distribution strategies. Producers face a few problems when making the decision to create a distribution channel, different issues when the refinery or the manufacturer are new firms and other issues when they are already on the market. In the first case, the main issue is not the choice of the best channels but, by resorting to existing intermediaries on the petroleum products market, it is necessary to convince one or more intermediaries to make available their own capacities. This call is made, of course, when the company does not have enough capital to build its own distribution network. Then, if the refinery is successful, the manufacturer will try to expand into new markets where it will once again try to work with existing intermediaries, even if this will mean using different distribution channels from one area to another. In smaller markets, the refinery can sell directly to stations (private distribution stations), and in large markets they will call on logistics service providers to distribute and sell. In certain parts of the market, the refinery can only operate in franchising, because it operates in that area of the market. In another part of the market, the refinery will be able to sell its products through all the trading points that will be willing to cooperate. The designer of the distribution channel or of his own distribution network must know the desires of the intended consumers, or the benefits they expect from them. The higher the benefits, the higher the distribution costs and the buyer's prices. The success of low-priced petroleum products distribution stations is evidence that many consumers are willing to accept lower benefits, then they are at lower prices. Conclusions The objectives of the distribution will be defined in relation to the benefits expected of the buyers concerned. Under competitive conditions, the logistics 28 QUAESTUS MULTIDISCIPLINARY RESEARCH JOURNAL service provider distributing and marketing petroleum products as a member of a distribution channel alongside the refiner or manufacturer and its own distribution network must perform its functional tasks in such a way as to contribute minimizing total channel or network costs, taking into account the benefits expected from buyers. There are also consumers who differ in the level of benefits expected from a distribution system or from the agent's own distribution network for the marketing of petroleum products. Creating an efficient distribution channel by the refinery or an efficient distribution network implies:  Determining the market segments to be served,  Selection of channels or network for each segment  Characteristics of petroleum product, liquefied petroleum gas (g.p.), complementary products, etc.  Determining batch size  Determining the transport distance  Determining the number of product manipulations  Characteristics of complementary products. So, complementary products of the perishable nature of food require a direct distribution due to the negative effects that their delays and repeated manipulation may cause. Non-standard complementary products in the category of automotive parts and accessories, automotive cosmetics, human cosmetics, additives and oils, the petroleum product marketing agent should make additional efforts to have all the necessary information about them in order to sell them. Bibliography 1.BĂCANU, B. – Management strategic, Ed. Teora, 1997 2.BĂILEŞTEANU, Gh. - Diagnostic, Risc şi Eficienţă în Afaceri, Ed. Mirton, Timişoara, 1998 3.BĂILEŞTEANU, Gh., IŞFĂNESCU, G., NEGRILĂ, A. – Diagnosticul financiar al întreprinderiI, Vol.I, Ed. Dacia Europa Nova, Lugoj, 1999 4.BĂILEŞTEANU, Gh., IŞFĂNESCU, G., NEGRILĂ, A. – Economia întreprinderii, Vol.I, Ed. Dacia Europa Nova, Lugoj, 1999 5.BAKER, M.J.- Marketing strategy and Management, 2-nd Edition, The MacMillan Press Ltd. London, 1980 6.PAVEL C., NEGRUT C. - Bazele marketingului, Editura Eurobit, Timisoara, 2011. 7. www.petroleumonline.com 8. www.ihrdc.com NOTES ON THE AUTHORS Florea VLAD is Associate prof. at the Faculty of Management in Tourism and Commerce Timişoara, „Dimitrie Cantemir”Christian University. He holds a PhD. In Management with the thesis Management in the Logistics and Distribution of Oil 29 QUAESTUS MULTIDISCIPLINARY RESEARCH JOURNAL Products. He is the author of numerous books and articles on management, the latest one being Management strategic, metode de elaborare, Eurostampa, 2010. Ciprian PAVEL is lecturer at the Faculty of Management in Tourism and Commerce, Dimitrie Cantemir Christian University Timişoara. He holds a PhD. in Marketing since 2010, with a thesis entitled Contribuții cu privire la politica de comunicare în marketingul produselor și serviciilor bancare. He is author or coauthor of various books and articles: Politica de comunicare în marketingul produselor și serviciilor bancare, Editura Universităţii de Vest, Timişoara, 2013, Bazele marketingului, Editura Eurobit, Timişoara, 2011. He is a member in AGER and American Marketing Association. 30 Reproduced with permission of copyright owner. Further reproduction prohibited without permission.
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Explanation & Answer

Attached.

Running head: DISTRIBUTION CHANNEL

1

Distribution Channel
Student’s Name
Institution
Date

DISTRIBUTION CHANNEL

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Introduction

It is essential for any firm to understand the effectiveness of product distribution to
ensure that the intended customers to get the products at the right time. Marketing distribution
channel, digital marketing, and promotional strategies are vital concepts in business.
Identification of the target market is a way of ascertaining if a company requires different
channels of distribution (Kerin et al., 2007). For this paper, I am needed to help a newly formed
sports Apparel Company decide what strategy distribution to emulate for the products. The paper
will define what distribution channel is and explain the importance, differentiate between direct
and indirect distribution channels, introduce the article selected, compare and contrast the
differences and similarities in distribution strategies for online vis-à-vis brick and mortar
businesses, and recommend distribution strategies for the company chosen.
Definition of the distribution channel and its importance in the marketing process
Distribution channel refers to the chain of intermediaries or firms where a product or service
passes until it gets to the end product (Lamb, Hair, & McDaniel, 2011). The chain includes
retailers, wholesalers, distributors, or the internet. The importance of channel of distribution is
that it places the product is placed in one place while the consumers are from different parts.
Therefore, the gap between producers and consumers is significant, and the channels help in
narrowing the gap. The distribution channels provide a link between t...


Anonymous
Really great stuff, couldn't ask for more.

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