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Marketing and the Information Technology Sector - Research Paper Example

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This paper provides a thorough explanation of how a marketer can efficiently and effectively distribute the product to the customer. In most cases, it is inefficient for the marketer to engage in the direct distribution of the product to the customer as distribution occurs through a channel of tasks…
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Marketing and the Information Technology Sector
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MARKETING AND THE INFORMATION TECHNOLOGY SECTOR Summary ial Content: This ial provided a thorough explanation of how a marketer can efficiently and effectively distribute the product to the customer. In most cases, it is inefficient for the marketer to engage in direct distribution of the product to the customer as distribution occurs through a channel of tasks, most of which the marketer may not have the resources nor the skill to complete. It therefore essential that the marketer use a clear cost-benefit analysis to determine the best channel partnerships that would achieve the distribution aims for the product. Such an analysis would consider the physical characteristics of the product and therefore its transportation and storage needs, the promotional activities associated with the product, the sensitivity of sale volumes of the product to price changes, and what distribution coverage is best met by customer demand for the product, i.e. whether the product should have mass distribution or a more exclusive distribution. Depending on the coverage of distribution required, the marketer would then be able to decide whether to use resellers, such as wholesalers or retailers, to assist with getting the product to the customer, or to use specialty service firms who would act as brokers in bringing the customer to the product. Another important aspect the marketer has to consider in choosing channel partners is the type of relationship, whether independent or dependent arrangements would be used to move the product to the customer.
2. How effective is the Tutorial in presenting the material: In covering the issues related to product distribution, the material provided in the tutorial can be easily understood by those without any marketing experience. In providing links to specific issues, the reader need not go through the entire tutorial but can select a topic that is of interest, and summary charts, such as those in the Wholesalers and Retailers section are well used to assist the reader with assimilating all the information in a topic. Given the breadth of information available in the tutorial, there are aspects of the tutorial that do not provide the depth of information required by some marketing specialists thus requiring further research elsewhere. Unfortunately the tutorial does not provide any sources for further information.
3. Issues relating to information and information systems arising from the tutorial: The use of information systems in all aspects of the distribution chain is clearly indicated in this tutorial. IT is important in making the customer aware of the product and its availability. Wholesalers and retailers use IT to sell the products, and customers are increasingly using IT to purchase products e.g. over the internet. The internet has allowed retailers to sell the product in more than one format and has even allowed private individuals to re-sell products, introducing a new channel in the distribution system. IT has become more important in the order entry and processing phase of moving the product from the marketer to the client. Finally, with the selling of IT products, new issues have surfaced for the marketer such as product security during storage, and technical support in the distribution of the product.
4. The advice I would give about marketing that you would give an IT manager based on the above information include 1) The importance of IT in the development of distribution channels is increasing. E-tailing is the fastest growing mechanism of getting products to retailers; 2) IT has to play a variety of rolls including helping marketers determine their level of production and inventory based on demand forecasting, processing consumer payments and acting as a communication mechanism between members of a distribution channel; 3) The need to ensure the security of IT systems in the variety of roles they play along the distribution channel is paramount; 4)Given the varied use of IT systems, technical support would have to be developed for a number of different users. Read More
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