StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Product and Place with Nutritional Supplements - Assignment Example

Cite this document
Summary
This paper "Product and Place with Nutritional Supplements" is an assessment of various distribution channels through which goods and services are marketed. The paper describes what a distribution channel is and it classifies distribution channels into direct and indirect distribution channels. …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.3% of users find it useful
Product and Place with Nutritional Supplements
Read Text Preview

Extract of sample "Product and Place with Nutritional Supplements"

? Individual Project Principles of Marketing This paper is an assessment of various distribution channels through which goods and services are marketed. The paper describes what a distribution channel is and it classifies distribution channels into: direct and indirect distribution channels. These channels are normally organized into vertical, horizontal, conventional and multichannel marketing systems. The author of this paper also notes that depending on the target market available, the distribution of goods and services can be done intensively, selectively or exclusively. Product and Place with Nutritional Supplements Introduction Product, place (distribution), promotion and price are the four most important marketing considerations. According to Nevin, the nature of a product and how it appeals to customers determine its marketability. The distribution of the product in the market can be done selectively, exclusively or over a large area depending on the choice of the producer. The sale of the product is also influenced by its price and consumers probably go in for cheaper products. Moreover, customers tend to be attracted by marketers who give them appropriate promotions (Nevin, 2002). 1.) An Overview of Distribution Channels A distribution channel can be defined as a pathway through which goods and services move from the producer to the consumer (Frazier & Summers, 2000). It involves all the institutions through which goods and services must pass from the point of their production to the point of their consumption (Kerin, Hartley & Rudelius, 2011). Lyndon and Sally argue that any meaningful definition of a distribution channel should include the flow of payments (generated from the sale of goods and products) from the consumer to the producer (Lyndon & Sally, 1998). Thus as Nevin notes, a distribution channel is an element of marketing mix that is effected through two directions: from the producer to the consumer and from the consumer to the producer (Nevin, 2002). 1. A) Channel Levels: Direct versus Indirect Distribution A distribution channel is effected at two levels: the direct and indirect distribution channels (Frazier & Summers, 2000). In a direct distribution channel, the producer delivers goods and services to the consumer without using intermediaries or middlemen (Nevin, 2002). Thus the producer sells goods and services directly to the consumer. On the other hand, in an indirect distribution channel, the producer delivers goods and services to the consumer through the assistance of intermediaries (Nevin, 2002). Thus in this case, producers use a third party in selling their products in the market. Examples of intermediaries include wholesalers, agents and retailers among others (Kerin, Hartley & Rudelius, 2011). Using intermediaries normally results in greater sales than selling directly from the point of production to that of consumption (Lyndon & Sally, 1998). 1. B) Channel Organizations: Conventional, Vertical, Horizontal and Multichannel Marketing Systems There are four main forms of marketing systems along which most distribution channels are organized. Firstly, we have a conventional marketing system which involves one or more producers, wholesalers and retailers acting independently and separately in efforts to maximize their own gains (Kerin, Hartley & Rudelius, 2011). Secondly, we have a vertical marketing system in which producers, wholesalers and retailers function as a unified unit. Here, one of the channel members acts as the owner of all the others and exercises power over them (Frazier & Summers, 2000). Thirdly, there exist horizontal marketing systems in which two or more business companies at the same level combine their financial and marketing resources in pursuit of marketing opportunities (Lyndon & Sally, 1998). Finally, we have a multichannel marketing system where the producer uses two or more marketing channels in distributing goods and services (Nevin, 2002). 2.) Analyze your target market's needs Customers in different target markets pursued by nutritional supplements marketers have different nutritional needs (Lyndon & Sally, 1998). In an age target market, children have high nutritional needs compared to adults. This can be attributed to the fact that children are the most affected by diseases related to poor nutrition (Frazier & Summers, 2000). Due to their increased aspiration for ideal body images, women are likely to have high nutritional needs than men in a gender specific market. In an income sensitive market, the prices of the nutritional supplements need to be relatively cheaper for even the customers with low incomes to afford them (Nevin, 2002). In a geographical target market, marketers should bear in mind that customers from different regions have different nutritional needs. For instance, protein supplements might be of less significance in lake regions (Frazier & Summers, 2000). 2A.) Explain what you know about your target market and what they want from a channel of distribution. Although different factors may influence the demand for nutritional supplements in different target markets, what matters most is the extent to which one is informed about the importance of the dietary supplements (Nevin, 2002). Frazier and Summers argue that to some people, nutritional supplements can be seen as a luxury for those who have extra money to spend (Frazier & Summers, 2000). Therefore, a more informed customer will be much willing to purchase nutritional supplements than one who has no knowledge about the importance of nutritional supplements. According to Lyndon and Sally, in target markets characterized by such circumstances, a relatively longer and indirect channel of distribution is needed (Lyndon & Sally, 1998). An example is one comprising manufacturers’ representatives, dealers, wholesalers and retailers. This can be effected through intensive distribution channels and multichannel marketing systems. These channel members can play a significant role in popularizing the nutritional supplements. 3.) Determine which channel members you will use and explain why (Indirect: retailer, wholesaler, dealer, manufacturer's rep, etc. Direct: catalog, telephone, sales force, etc.). Indirect channels are important in that most customers are familiar with intermediaries than producers (Kerin, Hartley & Rudelius, 2011). In the sale of nutritional supplements, wholesales and retailers can be used by manufacturers to reach customers. Wholesalers buy the producer’s goods in bulky and then break them into manageable quantities for retailers. The retailers in turn ensure that the final consumers of the product get the right quality and quantity (Frazier & Summers, 2000). On the other hand, a direct channel enables the producer to serve its customers faster and at low prices than when using intermediaries (Nevin, 2002). In marketing nutritional supplements, using sales forces to sell a producer’s good directly to consumers is the most appropriate method of distribution. However, to reach a large market, on-line cataloguing system can also be used (Lyndon & Sally, 1998). 4.) Discuss how many channel members you will use and explain why (intensive distribution, exclusive distribution or selective distribution). Due to the existence of different market segments, the producers of nutritional supplements can apply each of the three main forms of distribution to a separate segment. In intensive distribution, a product is distributed in an area through all the available channels. This ensures that a large number of customers are reached (Frazier & Summers, 2000). Exclusive distribution is effected through using one particular wholesaler or retailer in a given area (Lyndon & Sally, 1998). This ensures that all the marketers of the products cooperate appropriately in decision making and price regulation. In selective distribution, a product is distributed through a limited number of outlets. According to Nevin, this form of distribution reduces marketing costs (Nevin, 2002). 5.) Recommend a channel organization and explain why (conventional, vertical, horizontal or multichannel marketing system). A horizontal marketing system is the most suitable system for marketing nutritional supplements. According to Lyndon and Sally, it allows both the competitors and non-competitors of the same level to combine resources and efforts in their pursuit for good marketing opportunities (Lyndon & Sally, 1998). This ensures that a task that cannot be done single handedly is accomplished. Due to large market coverage, a multichannel marketing system has to contend with a fierce competition for sales and customers (Frazier & summers, 2000). A conventional marketing system ignites a conflict of interest due to the independence of channel members to maximize their own gains at the expense of the whole system (Nevin, 2002). In a vertical marketing system, the dominant channel member might become too authoritative to an extent of interfering with the individual freedom of the other members (Kerin, Hartley & Rudelius, 2011). Conclusion A distribution channel enhances a smooth flow of goods and services from the producer to the consumer. The length of a distribution channel depends on the choice of the producer and the type of target market available. It can be short as in being direct from the producer to the consumer or it may include several intermediaries (wholesalers, agents, distributors and retailers). The distribution of goods and services can be done intensively, selectively or exclusively, depending on the needs of that particular target market. References Frazier, G. L. & Summers, J. O. (2000): Interim Influence Strategies and their Application within Distribution Channels, The Journal of Marketing, 48 (3): 43-55. Kerin, R. A., Hartley, S. W., & Rudelius W. (2011). Marketing (10th ed.). NY, NY: McGraw-Hill Companies, Inc. Lyndon S. & Sally D. (1998). Prioritizing Target Markets: Marketing Intelligence and Planning, Journal of Marketing Practice: Applied Marketing Science, 16 (7): 407 – 417. Nevin, J. R. (2002).Relationship Marketing and Distribution Channels: Exploring Fundamental Issues, Journal of the Academy of Marketing Science, 23(4):327-334. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Product and Place with Nutritional Supplements Assignment”, n.d.)
Product and Place with Nutritional Supplements Assignment. Retrieved from https://studentshare.org/marketing/1437850-product-place-with-nutritional-supplements
(Product and Place With Nutritional Supplements Assignment)
Product and Place With Nutritional Supplements Assignment. https://studentshare.org/marketing/1437850-product-place-with-nutritional-supplements.
“Product and Place With Nutritional Supplements Assignment”, n.d. https://studentshare.org/marketing/1437850-product-place-with-nutritional-supplements.
  • Cited: 0 times

CHECK THESE SAMPLES OF Product and Place with Nutritional Supplements

EU Food Supplement Directive

hellip; The directive which took effect in 2005 was also meant to ensure free movement of these products across national borders since there would be harmonised standards of all the supplements.... The directive (2002/46/EC) therefore gives important definition on the limits and ingredient for supplements.... It has been calling for the continued sale of supplements which are beneficial to the body and banning of those which are not beneficial to the body....
12 Pages (3000 words) Essay

Clinical Pharmacy and Parenteral Nutrition

It is evident that besides balanced food that is given to the patient some other nutrient supplements facilitate in recovery and reduce the health related troubles that become devastating if deficiency is related with the nutrients required for the well being.... Nutrition supplements are licensed products and can be provided as the sole source of nutrition.... Depending on the severity and class of sickness, the nutrition supplements can be taken....
6 Pages (1500 words) Essay

Meal Pill Product

Food supplements that are available in the market can only provide the necessary vitamins and minerals but are unable to incorporate calories, proteins and fibers due to technological limitation.... The equivalent of our product in the market would be a combination of several food supplements and food drinks.... In the paper “Meal Pill product” the author analyzes the product intended to be marketed – a “complete meal pill”....
8 Pages (2000 words) Research Paper

Definition of Marketing and Nutritional Supplements

However, the increase in the nutritional supplements selling companies has increased havoc since medical practitioners have noted with concern that some of these companies are money making since their productions are not regulated increasing controversy surrounding the products.... utritional supplements have increased tremendously due to the increased importance of essential vitamins and minerals that lack in people's body.... The founder, Jerry Brassfield, introduced this company at a very young age when he realized that quality supplements played a profound impact in restoration of people health....
2 Pages (500 words) Assignment

Strengths, Weaknesses, Opportunities, and Threats of Be Good To Go

Finally, based on this information (the products of the company the market, the customers and the The company produces a nutritional health supplements that are geared towards helping people who travel to avoid constipation.... For Be Good to Go, it is almost hard to identify which industry or sector to place it.... However, given the nature of the products that the firm provides to its customers, it is only necessary to place it in the health and nutrition supplement industry....
6 Pages (1500 words) Research Paper

Nutri Natural, Herbal, and Vitamin Supplements

A paper "Nutri Natural, Herbal, and Vitamin supplements" reports that most people consider buying vitamins and supplements as the best way to reduce contracting a lifestyle disease.... The increased demand for the food supplements and vitamins is being watched by organizations.... hellip; The world has now embraced the use of vitamins and supplements, which have seen a lot of investors look at taking advantage of the demand for establishing more companies....
5 Pages (1250 words) Research Paper

The Proper and Improper Use of Supplements

The essay "The Proper and Improper Use of supplements" discusses various types of supplements and note on how they function has also been explained in detail.... The researcher also explores the pros and cons of supplements like creatine, whey protein, Casein protein, BCAA, Ecdysterone, HMB, Anabolic steroids and etc.... hellip; Towards the end stress is given on proper usage of these supplements to enhance bodybuilding without side effects Since the beginning of Civilization people have been interested in maintaining good health, developing strong bodies, and extending their live span....
6 Pages (1500 words) Essay

Nutrition Supplementation and Lifestyle

The productivity of a population depends on its nutritional status.... The scope of application of this theory comprises of health education plans of actions, as well as other strategies aimed at elevating the nutritional status of children.... Elevating nutritional status through increasing the varieties of foods accessible for children encompasses change of certain behaviours, personal perceptions, as well as environmental issues.... These include the domestication of animals to be used as food sources and growing or farming of traditional vegetables and other food crops with high nutritional value....
8 Pages (2000 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us