The Distribution Strategy As a Component of a Company Organization

Last Updated: 16 May 2023
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Distribution strategy is an important aspect within a business organization since it provides a critical factor in the overall rating of the company within the market. The distribution strategy therefore forms part of the service aspect of the business and thus it should be clearly developed to provide a clear understanding of the key issues within a business organization. Therefore, there is significant need for a company to put in place a clear and effective distribution strategy where customers are able to receive their purchases within the shortest time possible. Therefore, there are a number of distribution strategies, which can be integrated into organizational environment to provide quality service delivery across different geographical environments.

Define what a distribution channel is and discuss why it is important to the marketing process.

A distribution channel refers to a pathway through which goods and services flow from the producers to customers. Every business organization has its own distribution channel, which is integrated into business operations where the goods and services can reach their clients. A distribution channel is therefore developed depending on the target market that the business has outlined (Rushton, Croucher & Baker, 2014).

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The distribution channel therefore plays a very crucial role in defining the relationship between customers and the business. Every customers wishes to get their purchased goods within the shortest time possible and thus if the business is in a position to ensure that this is achieved, the bond that exists between the business organization and the customers is strengthened.

The distribution channel provides a significant control of the existing loophole between the business and the customers. It is important to understand that the business organization is only one but with customers scattered all over in different geographical locations. Therefore, the distribution channels is very important in sense that it reduces this existing difference between the business and the customers which is an important factor to consider since it defined the overall business engagement within a given business environment.

Therefore, the overall influence that a distribution channel has to the relationship between a business and customers is immense and this is the main reason why business organizations usually focus on streamlining their distribution channels in order to ensure that they are well engaged in the market.

Discuss the differences between direct and indirect distribution channels.

Business organizations tend to organize their distribution channels differently depending on a number of factors, which play a significant role in influencing their overall engagement in the market. The key distribution strategies that are adopted by organizations include direct and indirect distribution channel. A direct distribution channel is a channel, which is organized and managed by an organization itself. Organizations tend to adopt this strategy especially where they are dealing with a smaller geographical location where they can easily multi task and monitor all the processes within organizational environment.

Indirect distribution channel is a distribution channel that is developed by a third party and contracted by a business to manage the company's distribution process and ensure that the goods and service reach their customers. The company in this case does not have control over the logistical process employed by the distribution company, which is being contracted. The key objective of the business in this case is to ensure that the goods and services reach the customers within the stipulated time. Most of the companies who operate within a large geographical region usually employ this distribution technique due to a number of factors such as the costs involved (Rushton, Croucher & Baker, 2014). Introduce the article and its author(s) and give a brief summary of its core message(s).

The article considered in this case Olsson Gadde (2013) about the changing role of middlemen focusing on the strategic responses to industrial dynamics. The article highlights that middlemen in the recent past have been playing significant role in managing the existing relationships between customers and business organizations. However, the changing dynamics within business environment have seen reduced role of middlemen in the overall operations within organizational environment. The distributor is a key player to an organization. Therefore, it should be significantly engaged in order to ensure that there is a clear existing relationship within the industry, which boots the organizational engagement in the market (Olsson, Gadde & Hulthén, 2013).

The article highlights that the role of distributors in the current business industry has been significant and thus as a result there have been significant emergency of distribution companies who focus on exploiting the existing business opportunity in linking the customers to business organizations. The distribution process is a layered process where every stakeholder plays a crucial role in guiding the overall success of the business within the industry.

Analyze the relationship distribution channels have to maintaining a satisfied target market.

The distribution channels provide a better environment within the market since most of the customers usually evaluate the distribution channel, which is used by a company before deciding to conduct business. This shows how the distribution channel plays an integral role in guiding the existing relationship between the company and the target market. A satisfied target market is mainly because of good service delivery by a given company. The distribution channel therefore is integral to a satisfied or dissatisfied target market (Grewal et.al, 2013).

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.

Online business have significantly embraced diversity and thus have very flexible distribution strategies, which they use to ensure that their clients receive the goods ordered within the specified period. Amazon Company is one of the greatest online businesses, which have been significantly engaged in recent past due to its clear distribution strategy where they have contracted third party distributors to ensure that the clients receive their goods.

Therefore, online businesses employ indirect distribution strategy to manage their diverse target market. Brick and motor company's tend to employ traditional distribution strategies where in most cases they are organized effectively where they take care of all the distributions aspect of the business (Grewal et.al, 2013). Recommend distribution strategy(ies) for the company and what reasoning led you to conclude this was the best solution.

As a sporting company, there is need to put in place a clear distribution strategy where its wide target market can be reached. Therefore, multiple distribution channels would be significant in this case since it will ensure that all the customers are engaged effectively. These multiple distribution channel include Wholesale distributor, Internet, Catalog, Sales Team, Resellers, Retailers, and Dealers for B2B markets.

The wholesale distributors would help sell in bulk to both the private and small business consumers. The Internet distribution system will be a very effective method for both national and international customers who want the product wherever they are. This is also makes the product very marketable eliminating the intermediary and placing distribution cost (Shipping) on the customer.

Catalog distribution channel creates continuous marketing trend as the advertisement cost is minimal and the like the internet distribution channel, eliminates the middleman taking it from warehouse to the consumer. Retailers make it easy for the go to store consumers who do not want to deal with internet orders, catalogs or the buy in bulk. This channel gives the consumer the ease to purchase the product to their needed portion although they might have to pay a little more because of the overhead costs. Dealers for the B2B market, deals with the business sector of consumers (Bryła, 2015).

References

  1. Bryła, P. (2015). The role of appeals to tradition in origin food marketing. A survey among
  2. Polish consumers. Appetite, 91, 302-310. Grewal, R., Kumar, A., Mallapragada, G., & Saini, A. (2013). Marketing channels in foreign markets: control mechanisms and the moderating role of multinational corporation headquarters-subsidiary relationship. Journal of Marketing Research, 50(3), 378-398. Olsson, R., Gadde, L. E., & Hulthén, K. (2013).
  3. The changing role of middlemen-Strategic responses to distribution dynamics. Industrial Marketing Management, 42(7), 1131- 1140.https://doi.org/10.1016/j.indmarman.2013.06.006 Rushton, A., Croucher, P., & Baker, P. (2014).
  4. The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.

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The Distribution Strategy As a Component of a Company Organization. (2023, May 16). Retrieved from https://phdessay.com/the-distribution-strategy-as-a-component-of-a-company-organization/

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