Last Updated 04 Aug 2020

Distribution Channel

Category Essay Examples
Essay type Research
Words 567 (2 pages)
Views 283

Choice of distribution channels

The choice of distribution channels is an important part of the companies’ development and has a significant effect on production and sales. The production of the iPad is very professional, scientific, and specific. Because of its mention, high-tech products have specified when it comes to the channels of distribution. Usually, we can use centralized distribution channels. Among all of the methods mentioned above, the most frequent method s Apple use to distribute iPod is the personal selling and agency. Apple adopts personal selling because manufacturing companies can trade with customers directly, supplying all-around services such as product transport, organization and research, preservation and technical support.

In that way, it can ensure the efficiency of the operation of the channel. Direct selling means that there is only one point between the producer and the final users, so the target users are usually large or medium companies. Although this method is widely used abroad, it develops slowly in China. Compared with personal selling, Apple mainly sells iPods through the distribution channel of the Agency. And this approach plays a main role in the sales of electrical products in China. Its main advantage is that it can cover a large number of users, which is in favor of the promotion of iPod as well as increase the popularity and regulation of the products of Apple.

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Personal selling: Apple Corp set up a large number of offices and branches to come fixed big customers, such as Ogilvy, Mccann, Leo Bernard. Under management and allocation in the marketing center, for the customer service, and develop new customers in the related area.

Agency: Compared to sales, agents for apple is the role of its products to more general consumers In addition to professional customers in the area, With the return of Jobs and the Apple iPod series products, Apple opens a new market in the majority of ordinary users. so, relations of mutual benefit and reciprocity between apple and agents, which makes the business of agents and the distributors is prosperous.

Distributor: Different from the agents, as a distributor, Apple give them exclusive distribution rights, good profits, training of products as well as support for promotion, which gives them more advantages in sales. In some parts, Apple will authorize a number of third-party companies to produce similar products and allow them to be sold on the market without labels. While in mainland China, people will see some products claiming to be Apple ‘s OEM product labeling. Distributors claim that these products are Apple Proxy Companies production, but the authority of Apple has not admitted that and has the rumor, its attitude is ruminated.

Shops: We can say it is Apple that brings the boom, the model of running shops almost violates the fundamental principle of sales. The servants of the shops will only commute with the customers about the clever use of the products, but they rarely persuade them to buy immediately. Actually, from the establishment of 251 shores within 7 years and 20 percent of Apples’ sales income, we can conclude that the model is very successful.
Online shop: this shop is not the distribution of online sales like Taobao, but the sales model on Apple’s official website established by itself. The fact, if you are a user of the iPod , most changes will be conducted on its website. so, as a user of Apple, you can hardly be attracted by its products

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Distribution Channel. (2017, Mar 03). Retrieved from https://phdessay.com/distribution-channel-2/

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