What is the distribution channel? What is the relationship between channels of distribution and logistics? How does geographical location affect your selection of distribution channels?
A distribution channel involves firms and a group of people who are responsible for transferring a product from manufacturers to consumers, or buyers. A distribution channel includes producers, buyers, and intermediaries, such as wholesalers and retailers. The main purpose of a distribution channel is to meet the needs and concerns of the target customers, as well as the objectives of different parties concerned (Kapoor and Kansal, 2004, p. 28).
While considering the movement of products from the point of production of goods to the potential consumers, it is purposeful to refer to the role of physical distribution, which is closely associated with logistics. In common terms, logistics involves the flow of materials, from acquiring the raw materials for manufacture, buying component parts to distributing the final product to the potential buyers.
At this point, logistics encompasses two key operations – material management and distribution management (Kapoor and Kansal, 2004). Judging from the above-presented definitions, the distribution channel is more premised on marketing strategies of allocating goods in terms of market segmentation and demand whereas logistics ensures efficient distributions and guarantees on-time delivery of goods.
Geographical location plays a pivotal role in product distribution and promotion. Due to the growing trend of industrial decentralization with regard to the location sites, the manufacturers are concerned with the effective physical distribution operations to meet the needs of companies and customers (Kapoor and Kansal, 2004, 15). Hence, distribution management can improve transportation, private and public warehouse, and market area analysis.
What are the similarities and differences between promotional push strategies and promotional pull strategies? Examples of push and pull strategies
Companies make use of push and pull promotional strategies to create consumer demand for a specific product. Hence, a push promotional strategy implies using the company’s trade tradition and force sales to increase the customer’s demand. In contrast, a pull promotional strategy relies on advertising and promotion to increase consumer demand (Armstrong et al., 2009). The main similarity between the two strategies lies in their goal to increase customer demand. The difference lies in the means by which the promotion is carried out.
One of the relevant examples of push promotion is selling mobile phones by Nokia manufactures. The producers promote phones through retailers’ Warehouse. In this respect, trade promotion and personal selling are successful promotional tools because they can offer subsidies and encourage retailers to promote higher volumes of phones (Armstrong et al., 2009). The main peculiarity of a push promotional strategy consists of promoting a product and pushing it directly to the customer, omitting distribution channels.
Children’s toys promotion is a bright example of a pull promotional strategy. It is premised on television advertising and promotional campaigns. Because children are fond of cartoons and animated movies, they would definitely want to buy a toy resembling a cartoon hero. As a result, companies make use of physical distribution channels to promote the product and make the customers buy it (Armstrong et al., 2009). The main peculiarity of a pull promotional strategy is based on promotional chains where consumers will inform the retailers about their needs, the retails will inform wholesalers who, in their turn, ask the manufacturers. In other words, the pull promotional strategy has an inverse approach – from a customer to a producer.
What does the term noise mean in marketing? With so much advertising noise in the marketplace, how can a company ensure its message is heard?
Noise is marketing is closely associated with the advertising techniques stimulating consumption. While communicating an idea, concept, or promoting a product, the term ‘noise’ refers to the constant flow of advertising ideas, concepts, and campaigns, which prevent newly emerged products to be noticed by consumers (Hackley, 2005, p. 30). Within advertising ‘noise’, creating an effective product promotion campaign is a serious challenge because the manufacturers should work out strategies that would prevent ‘noise’ messages from interfering with their advertising process.
In order to avoid miscommunication and eliminate marketing ‘noise’, there should be ads that would capture the customer’s attention. At this point, it is necessary to introduce active and passive research to identify whether the consumer actually needs a product or not (Hackley, 2005, p. 31). Through active research, surveys, polls, and questionnaires can be introduced to define how often consumers make use of different communication channels. Searching for information during the adequate course of events is passive research, another level of attracting attention (Hackley, 2005, p. 31). Finally, a consumer often obtains passive information without any effort made.
All three channels should be taken into consideration to define why a consumer makes use of those channels. With regard to the type of product consumed and the sources of information used, the advertising should development its promotion strategies. Overall, ensuring customer’s cognitive engagement with the advertising message increases chances for the successful promotion of a product.
References
Armstrong, G., Harker, M., Kotler, P., and Brennan. (2009). Marketing: An Introduction. US: Pearson Education.
Hackley, C. E. (2005). Advertising and Promotion: Communicating Brands. US: SAGE.
Kapoor, S. K., & Kansal, P. (2004). Basics of Distribution Management: A Logistical Approach. US: PHI Learning Pvt. Ltd.