Distribution Channels - Coursework Example

? MKT302 Mod 3 Case: The Marketing Mix: Distribution Channels (Place) Overview In the process of marketing mix, distribution channel which is categorised under place segment plays a vital role for marketers to ensure that an organisation’s products receive enhanced viewer-ship and footfall from the prospective customers. In this regard, the paper aims to discuss two products i.e. automobiles and canned soups to explain an appropriate distribution strategy for each of them. A comparison and contrast of the specified distribution strategies of the two distinct product categories will be analysed to comprehend the similarity or differences between them. Appropriate Distribution Strategy for Each of the Products Distribution strategy requires to be primarily based on the aspect of gaining appropriate market coverage. In this regard, it is determined that distribution strategy can be categorised into three segments including intensive distribution, selective distribution and exclusive distribution. Intensive distribution is a process which is utilised to make distribution of low priced as well as impulse purchase based offerings. These offerings comprise soft drinks and chocolates among others. Similarly, selective distribution strategy refers to making distribution by the use of a limited number of retail based outlets. Household products, computers and appliances among others are generally strategized to be distributed under this method. An enhanced geographical reach can be attained through this method. In relation to exclusive distribution, it is determined that distribution process takes places within a particular outlet. Greater priced products which require the support of intermediary such as vehicles are distributed through this method. Generally, distribution of vehicles is made with the aid of dealers (Pierce College, n.d.; Iyer & Vilas-Boas, 2003). In this context, before providing a justified recommendation regarding appropriate distribution strategy for both automobiles and canned soups, it is prudent to demarcate them based on high involvement and low involvement purchase. The products which cannot be easily purchased because of their high price are called high involvement products and products which belong to the low price range and which can be easily purchased are called low involvement products (Douglas, 2006). Product offerings such as automobiles and jewellery are categorised under high involvement, while canned soups, fast food and magazines among others belong to the low involvement section. In terms of consumer purchasing decision making, for high involvement products such as automobiles as the consumer involvement would be greater because of high price thus exclusive distribution strategy can be followed. This distribution strategy would facilitate automobiles especially the companies to select particular distributors for their offerings. The companies can further train the distributors as per their requirements so that they are able to communicate efficiently about the products’ features and specialty which in turn can enable them to judge consumer behaviour. In this context, the distribution strategy of selecting particular intermediate inventory based storage points would be appropriate for automobiles within the process of exclusive distribution strategy. This is because in case of high involvement purchase such as automobiles customers’ generally are quite conscious about their purchase. Thus, they always intend to attain a thorough understanding about the high-end products that they are going to acquire. In this scenario, the use of exclusive distribution strategy with the aid of particular inventory based storage points would be quite appropriate. In case of canned soups, intensive distribution strategy would be quite appropriate. This is due to the fact that canned soups are considered as relatively low priced products and the companies generally should aim to make distribution of the said product at as many outlets or locations i.e. places as possible. This product can be demarcated under impulse purchase segment in which consumer buying behaviour vary from high involvement purchase. At times, it is determined that the consumers might not make concrete purchase decision for canned soups but might decide to purchase it out of sudden impulsive urge. Therefore, the marketers of such offerings need to ascertain that in relation to intensive distribution strategy their canned soup products are readily available in front of as many consumers as possible (Liberatore, n.d.). Compare and Contrast of Two Distribution Strategies Along with Illustration of Specific Brands The two distribution strategies suggested for automobiles and canned soups have been exclusive distribution and intensive distribution respectively. In terms of making a comparison and contrast, it can be determined that these two strategies can be quite different from each other. The difference in between these two strategies primarily occurs due to the consumer buying process for the offerings. Consumer buying process is based on five stages including problem identification, information search, determining possible alternative product related options, making purchase decision and ultimately going for the actual purchase of the desired product along with making post-purchase evaluation. In relation these stages of consumer buying process, it can be determined that for automobiles the consumer buying behaviour generally intend to strictly follow each and every step as this purchase is categorised under high involvement buying. The consumers’ willing to purchase an automobile wish to visit the distribution of outlet of the branded automobile at times more than once to finalise their choice after going through each stage of consumer buying process. Thus, exclusive distribution through the use of specific outlet where an automobile company can use qualified trained staff would be an appropriate choice as per the product category. For example, Toyota, a leading automobile manufacturer uses exclusive distribution strategy through the incorporation of intermediate channels to make its vehicles easily accessible to consumers for evaluation. Similarly, Ford Motor Company uses exclusive distribution strategy comprehensively as it is determined from the fact that in a number of cities there is only a single dealer of Ford. This strategy can at times hamper market coverage, however for costly high-end products such as automobiles ensuring long-term customer satisfaction plays the major role. This aspect can be attained by exclusive distribution strategy (Boone & Kurtz, 2011). Conversely, the distribution strategy of intensive distribution is quite distinct as compared to exclusive distribution strategy. This factor can also be related with consumer buying process. In case of relatively low priced offerings such as canned soups, intensive distribution strategy would be quite appropriate. In case of this strategy as compared to exclusive distribution, the number of places where the products offered to the consumers is quite high. The aim of the marketer is generally on ensuring that these products are available in as many places as possible for ready purchase. Consumers generally make impulse purchase of these low involvement offerings, thus it necessitates greater visibility amid the consumers so that the impulse purchase attribute can be used by the marketers. For example, leading canned soup company Campbell Soup makes use of intensive distribution strategy. It makes its soup products available in many places such as supermarkets, Sears, general stores and even drug-stores (Boone & Kurtz, 2011). Thus, conclusively, it can be stated that these two distinct strategies of distribution channel would be quite suitable for both the segments i.e. automobiles and canned soups. References Boone, L. E. & Kurtz, D. L. (2011). Contemporary Marketing. United States: Cengage Learning. Douglas, N. (2006). An Examination of How Product Involvement Affects Brand Loyalty. Auckland University of Technology, pp. 1-103. Iyer, G. & Vilas-Boas, J. M. (2003). A Bargaining Theory of Distribution Channels. Journal of Marketing Research XI, pp. 80-100. Liberatore, M. J. (n.d). Distribution Strategies. Direct Shipment Distribution Strategies. Pierce College. (n.d.). Product Distribution. Retrieved from http://faculty.piercecollege.edu/rskidmore/Ghost/library/Chapters/CHPT15-04.pdf Read More