Bachelor of Science in Business Administration
Major in Marketing Management
Research Paper & Report
DISTRIBUTION STRATEGY
For Partial Completion of the Course
Marketing 25: Marketing Management
Submitted by:
Claudio, Patrick Angelo
De Belen, Pamela
Dosalla, Christian
Imperial, Graceshelle
Submitted to:
Mr. Abelito Quiwa, MBA
Objectives
1. To understand the development and management of the channels in distribution and the process of goods distribution in complex, competitive, and specialized economies. 2. To distinguish the different marketing intermediaries and the functions they perform in the distribution process 3. To know how to select the proper channels of distribution depending on the circumstances of the market. 4. To discuss in-depth details on wholesaling, store and nonstore retailing
The Need for Marketing Intermediaries
Most producers use intermediaries to bring their products to market. They try to develop a distribution channel (marketing channel) to do this. A distribution channel is a set of interdependent organizations that help make a product available for use or consumption by the consumer or business user. Channel intermediaries are firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user.
A company’s channel decisions directly affect every other marketing decision. Place decisions, for example, affect pricing. Marketers that distribute products through mass merchandisers such as Wal-Mart will have different pricing objectives and strategies than will those that sell to specialty stores. Distribution decisions can sometimes give a product a distinct position in the market. The choice of retailers and other intermediaries is strongly tied to the product itself. Manufacturers select mass merchandisers to sell middle price ranged products while they distribute top-of-the-line products